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My grandma keeps telling me she is going to get my child gerber life insurance?

She is old, and not very "there". Now, I know enough about money to know that life insurance on a kid is a horrendous idea. You are better off putting the money in a savings account. Plus, we have money in a savings for this. Why is she so darn instant. it's every single converstation almost. How do I say NO - so she remembers this? Are all grandmas like this? Or is she just getitng junk mail and then thinking about her grandchildren? I wish she would say - does your kid have a 529 plan? Can I donate money to it? How can I bring up this idea? Do I just say give us the money instead so we can save it for college? Would you just give up and let her open this insurance policy just to make her happy?

Public Comments

1. If she wants to pay for a life insurance policy for your child, I don't see the harm in it. Personally, I don't think its a horrendous idea. If your child were to develop a disease or condition, that could make it impossible for the child to get life insurance as an adult having the childhood policy can be a good thing. A policy taken out and kept in force when the child was young stays in force as long as the premiums are paid. Some of them you can even increase coverage. And the premiums are relatively cheap. Therefore, you put a small policy on them as children. $15000 or so (enough to bury them if they were to pass away and a burial is easily $10,000). Then turn it over to them to pay the premium themselves as adults. If the child wants to continue to pay the premium and keep the policy in force - they can. (which is a great option if a medical condition prevents the now adult from getting life insurance). If it was me, I'd say "thank you very much grandma" and let her get the policy.
2. Toni, you approach her and explain that you and your husband can easily handle burial expenses if a tragedy occurs, but you are struggling to fund the 529 plan. Hint, hint.