Losing a child is an unthinkable tragedy, and, of course, parents want to protect their children in every way. As a result, many insurance companies offer life insurance policies for children. But before you follow your heart and buy that policy, think about it with your head.

Jeff Opdyke, author of The Wall Street Journal Complete Personal Finance Guidebook, writes that, in general, children do not need life insurance. Life insurance is for those individuals whose death would debilitate their dependents financially. Since children typically don't have either income or dependents, life insurance policies for them are usually not necessary.

But parents should buy policies for themselves so their kids are protected.

There are a few exceptions. Funerals can cost thousands of dollars, and if you don't have the money, life insurance can be useful. Consider buying a small term policy just to cover burial and funeral expenses.

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