Life insurance is a sound way to cover those debts so your family won't have to. Typically, children are not covered by life insurance. However, many people purchase riders on their own life insurance policies to cover burial expenses. Riders are extra, add-on benefits that can be purchased with a policy. Riders are an economical way to gain additional coverage.
Many people begin investing for their children's future soon after the child's birth.
Those funds can be used to pay for college expenses or as a down payment on a first home. And, of course, they would also be available in case of a tragedy. If you are fortunate enough to have a substantial estate, then you are probably aware of how heavily that estate can be taxed at the time of your death. Many people in your same situation purchase life insurance to help cover estate taxes. In the right circumstances, death benefits paid by life insurance are not taxable.