Reveals Importance of Discussing Life Insurance with Children and Relatives

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Following a September 3rd Bloomberg article titled “Drugs Trump Life Insurance in Parent-Child Conversations”, revealed the importance of discussing life insurance not only with a child, but also with friends and family. urged readers to comprehend the importance of speaking to loved ones about life insurance and what life insurance could mean for them, focusing specifically on any and all policy benefactors. This discussion was instigated by the September 3rd Bloomberg article entitled “Drugs Trump Life Insurance in Parent-Child Conversations”. The article revealed that drugs and “birds and the bees” discussions were deemed more comfortable and appropriate parent-child conversations than practical discussions of life insurance, what it means, and what will happen in the event of a parent’s death.

Zachary Tracer and Noah Buhayar’s abovementioned discussion touched on the discomfort associated with the discussion of death, particularly between a parent and child. Less than 40 percent of parents surveyed were comfortable discussing life insurance with their children, while over 50 percent are willing to discuss puberty, drugs, and substance abuse with their children. Most parents avoid the conversation about life insurance to avoid discussing death with children, as death can be both an uncomfortable and frightening topic. State Farm, a life insurance provider, released a set of commercials to spark conversations with parents and children, including the death of a family pet. Tracer and Buhayar cite statistics regarding the purchase of life insurance: 30 percent of Americans do not own life insurance, citing a lack of dependents, single relationship status, and insufficient funds.

The importance of discussing life insurance should be noted for its purely informative nature. Children and loved ones should be apprised of a family’s life insurance situation, as beneficiaries can vary from a spouse, to children or even parents. Beneficiaries should certainly be notified of their status and invited to discuss the potential benefits and pitfalls of acting as a life insurance beneficiary. Discussing life insurance and what precedes it will also prepare children and other loved ones for a death in the family and for the proceeds from a life insurance policy. Life insurance comes in many forms including term life, whole life, and no medical exam life insurance. The latter is typically reserved for those unable to pass medical examinations required for term and whole life insurance. Informative data charts can be found on this page titled “Life Insurance No Medical Exam.” Regardless of the insurance policy purchased, urged parents to discuss the effects of life insurance with their children and loved ones.

Zachary Tracer and Noah Buhayar are contributing authors for Bloomberg, a site designed to provide the latest news. The company, based out of Hong Kong, largely provides news to an American audience, focusing on American politics and finance matters. urged parents and adults to discuss the matter of life insurance with children, significant others or parents, both to provide practical information regarding the beneficiaries and the policy itself, and to discuss what will occur in the case of a parent or loved one’s death. Though these discussions will undoubtedly be difficult, urges individuals to consider the benefits of keeping lines of communication open regarding death and life insurance.

About is an online resource for news and counsel regarding personal finances and money management.

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