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Is a Gerber or other child life insurance policy worth buying?

For most families, child life insurance is a low priority and rarely the best use of money. The main purpose of life insurance is income replacement, and children don't earn income, so the financial loss from a child's death — though devastating emotionally — is mostly final expenses, which a small rider can cover far more cheaply. A child rider on a parent's policy typically insures all children for a modest sum at a low cost, which is usually plenty. The pitch for standalone child policies often emphasizes guaranteed future insurability and cash-value growth, but the cash value grows slowly and the dollars usually do more good in a 529 college plan or a low-cost index fund. Insure the parents adequately first; that's what actually protects the child. Direct extra dollars toward college savings at wealthserene.com/tools/college-planner.

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