When I got divorced several years ago, I restructured my finances since I would then be living on only my income for me and my four children. I did receive a small amount of child support while the kids were young, but that didn't even cover the cost of medical bills and prescriptions for my kids. Good thing I've always been frugal and thrifty when it came to finances!
One thing that I did invest in back in 2004 was life insurance for my children. I bought the Sunday Omaha World Herald religiously every Sunday for the coupons, and I kept seeing the advertisements with the cute Gerber baby on them advertising a Gerber Life juvenile life insurance policy for kids starting at only $1.00.
I figured if something would (God forbid) happen to one of my children, I did not (at the time) have enough money in savings to even pay for a funeral so life insurance would be a good idea. So I filled out the Gerber Life application form postcard (this was before everything was done online) and sent in the application with a check for $4.00 – $1.00 for each child (when everyone still used checks, too).
I picked a life insurance policy of $15,000 for each child, and every six months my locked in premium rate would be deducted from my checking account. This has went on for over 16 years. I thank God that I never had to cash in on any of them. So, did I waste my money for 16 years on something I never used? I don't think so, and here's why.
My children are now grown, and three of my four kids have now been offered life insurance policies through their employment. I cancelled the juvenile life insurance policies that I had been paying for as their employer offered ones that were better premium rates and higher payouts. Note: If your employer offers you life insurance, take advantage of it!
My third child turned the get-kicked-off-parents-insurance age of 26, and I knew the juvenile rates increase once the insured turns 26. So said child talked to a financial advisor and applied for a new life insurance policy through Primedica. So I planned to cancel her juvenile policy.
I had a heck of a time figuring out who to call to cancel the policy as the paperwork I had was from 2004 saying the policy was through Union Fidelity Life Insurance Company, which is a GE company. The website listed was www.gefpp.com (which is an invalid domain name now). And there were no phone numbers on any of the paperwork.
I ended up googling and calling some number only to get transferred a few times, but I finally got a nice lady with a Southern accent on the phone that could help me. She asked me some questions and then asked if I really wanted to cancel because to her it sounded like my daughter had some medical issues and may be denied. She encouraged me to wait to see if Primedica accepted the application before cancelling because the current juvenile policy would turn into a premium whole life insurance policy (that accrues cash value) at age 26. And yes, the premium cost would increase, but it would only increase that one time and remain that same price until the insured turned 100 years old.
I did not cancel the policy and decided to wait. And good thing I waited as Primedica turned down my daughter's life insurance policy due to medical issues. So the moral of the story is, get life insurance for your child (and/or grandchild)! You'll be glad you did if something unexpected happens or if your child ends up having medical issues that doesn't qualify them for traditional health insurance in the future.
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You may be thanking me 16 years from now!
P.S. The number to call for Union Fidelity Life Insurance Company is 1-800-621-0393 if you have any questions. The line is open Monday through Friday, 8:00 am to 5:00 pm Central Time. You're welcome.