Life Insurance For Children

Shawn Plummer

CEO, The Annuity Expert

Compare Life Insurance For Children

There are different types of life insurance for children. Whole life policies offer death benefit coverage and the chance to build cash value. Depending on the policy, parents, guardians, and grandparents can help the child pay for premiums, ensure coverage into adulthood, and invest for the future.

Why Buy A Life Insurance Policy On A Child

Most people purchase life insurance for the death benefit. This money will be paid out to your beneficiaries in the event of your death. If you have young children, this is a critical consideration. If something happens to you, your spouse may be unable to work or need to take care of the kids full-time. A life insurance policy can help ensure that your family is taken care of financially if you are no longer around.

Parents can use life insurance as a college savings plan. You can purchase a policy for your baby when they are born and name yourself the beneficiary. The death benefit can then be used to help pay for college expenses. This is a great way to get started on saving for college early! Gerber Life Insurance is one of the best child life insurance policies for college savings.

Another reason to buy life insurance for children is to cover burial and final expenses. If something happens to your child, the last thing you want to worry about is how you will pay for a funeral. A life insurance policy can help cover these costs so that you can focus on grieving and spending time with your family.

Types of Life Insurance for Children

1. Whole Life Insurance for Children (Ages 0-18)

  • Eligibility: From birth to 18 years.
  • Features:
    • Provides lifelong coverage.
    • Builds cash value over time.
  • Advantages: The policy can be a financial tool for the child’s future.

2. Term Life Insurance (Minimum Age 18)

3. Final Expense Plans

  • Eligibility: Designed for children with medical issues.
  • Features:
    • Limited underwriting.
    • Covers end-of-life expenses.
  • Advantages: Easier to obtain for children with health concerns.

4. Guaranteed Issue Child Rider

  • Eligibility: For children as riders on a parent’s policy.
  • Features:
    • Small coverage amounts.
    • No additional underwriting is needed.
  • Advantages: Provides some coverage and can be converted to an individual policy when the child becomes an adult.

Comparing Child Life Insurance Options

Insurance TypeAge EligibilityHealth UnderwritingCoverage TypeCash ValueKey Advantage
Whole Life Insurance0-18 yearsStandardLifelongYesFinancial tool for future
Term Life Insurance18+ yearsStandardFixed termNoLower premiums
Final Expense PlansAny ageLimitedEnd-of-life expensesVariesAccessible for health concerns
Guaranteed Issue Child RiderAs a riderNoneSmall amountsNoEasy conversion to individual policy

What Is a Juvenile Life Insurance Policy?

A juvenile life insurance policy is a type of life insurance specifically designed for children. These policies are typically purchased by parents or grandparents and provide coverage for the child until they reach a certain age, such as 18 or 21. Juvenile life insurance policies are generally less expensive than adult policies, and the coverage amount is often lower.

Some policies also offer additional features, such as converting the policy to an adult policy when the child reaches a certain age without needing medical underwriting.

It’s important to note that the purpose of a juvenile life insurance policy is not to provide a death benefit for the child but rather to provide life insurance coverage at a lower cost when the child is young and healthy with the idea of a lock-in lower premium as the child grow older.

Life Insurance For Kids

Family Protection Policy

This policy includes whole life insurance for the breadwinner and convertible term insurance for the spouse and children. In addition, if more children are born, they will be automatically included in the policy at no extra cost.

A family policy provides term insurance coverage for children without any extra charge. The term insurance expires on each child after a certain age, usually until they are 18 or 21. After that, coverage for the children can be changed to permanent insurance without proving that you are healthy.

These plans will help parents save for college tuition or provide coverage for a child between 15 days and 18 years. These policies are perfect for the following:

  • Parents want to save for their child’s college expenses.
  • Grandparents want to leave an inheritance to their grandkids.

Related Reading: How is whole life insurance as an investment?

Minimum Age For Whole Life Insurance

So how can life insurance help pay for college?

The Best Life Insurance Plans For Kids

These are the best life insurance plans for kids. For the traditional use of life insurance.

  • Term life insurance is more affordable and covers your child for a set period, usually until they turn 18 or 21.
  • For college savings purposes, whole life insurance is appropriate.
  • Permanent insurance is more expensive but covers your child’s entire life.

You will need to decide who will be the beneficiary of the policy. A good rule of thumb is to purchase a policy worth at least ten times your annual income. So if you make $50,000 per year, you would want a life insurance policy with a death benefit of at least $250,000.

The cost of the policy depends on the child’s age, where you live, and how much coverage you want. In addition, you can add a rider to your policy for extra protection.

CompanyCoverage RangeAge AvailabilityExpiration AgeAnnual Cost
Nationwide$5,000 – $25,00018-55Child’s 22nd birthday$50/year
Principal$2,000 – $25,00020-55Child’s 25th birthday$50/year
Lincoln Financial$1,000 – $15,00018-55Child’s 25th birthday$50/year
Prudential$10,000 – $100,00018-55Child’s 25th birthday$51.50/year
Banner Life$5,000 – $10,00020-55Child’s 25th birthday$55/year

Next Steps

Purchasing life insurance for children may seem daunting, but it is essential to consider their future. Following the steps in this guide will ensure that your children have the financial security they need. If you have any questions or want a quote, please do not hesitate to contact us. We would be happy to help you secure a life insurance policy for your child.

Child Life Insurance Quotes

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Frequently Asked Questions

Who offers the best life insurance for kids?

Because of their higher maximum coverage levels and A+ (Superior) rating with A.M. Best, North American Company and Gerber Life Insurance offers the best life insurance for kids.

Can you get life insurance on a child?

Yes, it is possible to get life insurance for a child. Life insurance policies for children are called juvenile life insurance or child life insurance.

Is life insurance for a child worth it?

Whether to get life insurance for a child depends on the family’s financial situation and priorities. Families should consider if they could cover the costs of a funeral or other expenses if the child unexpectedly passes away. They should also weigh the insurance cost against other financial priorities and expenses. Child life insurance policies can accumulate cash value over time and be used for future expenses such as college tuition or a down payment on a home.

How much does life insurance cost for a child?

The cost of life insurance for a child can vary depending on several factors, such as the child’s age, health, and the type and amount of coverage. Generally, child life insurance policies are relatively inexpensive, with premiums ranging from a few dollars to several dozen dollars per month.

What is the youngest age you can get life insurance?

The minimum age to purchase a life insurance policy varies by state and provider. Most require the insured to be at least 18 years old, but some offer coverage for children as young as 14 days old with parental consent. Certain providers offer policies for children with different age requirements and coverage options.

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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