Insuring Kids

So, having seen those annoying Gerber Grow Up plan ads forever and being in the process of evaluating adoption I was curious about the cost/value and did a little research.

So far the general consensus is it's pointless crap, but I think the most brutal evaluation of it was this one;

http://articles.marketwatch.com/2011-03-...e-premiums

As a general rule, insurance should cover things you can’t afford to replace. If you’re a parent and figure it would $1.5 million to enable your spouse and children to live comfortably and reach their goals if you were out of the picture, then a $1.5 million life insurance policy is appropriate.

But unless your kid is a star on Disney Channel, chances are your sweet baby doesn’t have any income to replace.

Ouch.

Although if you're adopting this might be less true, since the cost of adoption is so insanely high that if you lose your child you can't just pop another out next week or pick one up at the corner store. Not that I advocate immediately replacing a child to 'get over it', cause that's almost as callous as the quote.

One thing that does seem to be certain though; An independent plan such as the one offered by my employer would be more practical than the Gerber one, both from a cost perspective and potential compensation for tragedy.

So, thoughts?

I think your reasoning is solid.

Adoption - or surrogacy, should you choose that path - is expensive. It makes sense to want to insure against needing to do it again. And obviously it makes sense to shop for the best plan.

Sentiments are irrelevant when talking insurance. Money can't make up for the mental anguish of losing a child, unless you intend to use the money to drown your sorrows in alcohol.

I agree.

I had an aunt who went through something vaguely similar recently. She's been single her whole life, and adopted a child at the age of 40. She was evaluating all the insurance options, many of which were on the spendy side.

What her insurance provider suggested, as far as Life Insurance for herself goes, was enough to raise the child to the age of 18, plus four years of college. It's pricey, but insuring things you care about, in this case, her daughter's future, was pretty valuable.

So insuring something that's a major investment is probably worth the extra expense.

It all sounds very clinical this way though....