Phil Cannella Educates on Life Insurance & Kids


Phil Cannella recognizes that some people who have kids have taken out life insurance policies on their children. While he understands why they have done so, and does not necessarily disagree, Phil Cannella does have an interesting view on this.

First of all, Phil Cannella breaks down the essential purpose of life insurance, which is to provide a sum of money to the family upon the death of the policyholder so that they can continue the lifestyle they are used to. More important is that the family of the policyholder can continue to put food on the table, pay for college tuition, and pay the mortgage or whatever the financial concerns might be. This is the basic purpose of life insurance.

Phil Cannella agrees that most people love their kids. The bond between a parent and a child is like no other and anyone who has kids may have had a moment when they feared for their child’s life and that feeling is like no other. Phil Cannella says that some people take out life insurance on their child because it is considerably cheaper starting at an early age and one day they will be grown up and will have a nice present, as their life insurance policy would have accumulated a nice cash value. While you don’t know what your child’s health will be later in life, the chance of a child becoming un-insurable as an adult is extremely small. With insurance company underwriting taking medical advances into account, most people can get insurance even if they have a chronic illness or disease. If you have a family history of poor health, that issue probably will increase the cost of insurance, even for your child. And, if you can insure your child, it’s hard to project how much coverage your child may need as an adult.

Phil Cannella makes the point that it’s very important to look at what you want from life insurance and see if such a policy exists to fix the problem you want addressed. It’s all part of the education that people receive when they attend a Crash Proof Retirement educational event.