I’ll just ask: is it in the realm of possibillity that a cruel parent takes out a plan on the kid in the hopes they can make the kid so miserable and terified that if the live they get child support but if the kid kills themself they get a pile of money for the trouble?
I need to know what it could mean. This is Canada. Thank you, its ok im out now but in my personal work, this tidbit has surfaced.
Be gentle please
We could speculate all day, but it does you no good.
I have a life insurance policy on my child because it’s dirt cheap. Hopefully I never have to use it, but it’s about enough to cover funeral expenses and that’s it. No one is getting rich off of it.
This is the same as me. I also have a policy on both my kids. It’s $10k and it’s so I don’t have to worry about funeral costs.
There are also plans like that and turn into a college fund but it’s probably just better to use a 529 for that.
But ultimately, in my opinion, it’s better to have a one on the bread winner of the family. But some people feel they are never necessary.
If you die young you don’t need insurance because your spouse is still hot and can re-marry easily. If you die older your children are out of college and can take care of themselves.
Everyone take or don’t take insurance policies for their own reasons and it’s hard to know exactly why unless they make it plainly obvious.