Is birthday insurance worth it?

Just when you think there is insurance for everything, Commemorative Life Insurance has come out with, "AfterThoughts Birthday Insurance" which will provide birthday cards and cash to your lovely little grandchildren even after you have left this world. The program is a whole life insurance policy with premiums ranging from $141 to $725 depending on age and tobacco use. While the thought of providing a birthday greeting for the rest of your grandkid's life may be appealing, providing them a gift directly is likely to make more financial sense.

Imagine for a minute that you are a 60-year-old non-smoking female and you want to make sure your grandchild receives a $100 check and a birthday card for the rest of his life beginning when you die. If you live another 20 years and pay in $141.26 each year you will have paid AfterThoughts just shy of $3,000. At a payout rate of $100 per year for his life your grandson the investment wouldn't pay out any profit until his 49th birthday, assuming you bought the insurance the day he was born.