Life Insurance For Children Explained

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Child life insurance is a type of insurance plan that provides a cash payout upon a child’s death. The types of life insurance available are similar to those offered to adults, but they usually have lower premiums and coverage amounts.

Depending on your child’s plan, the insurance policy might just cover funeral expenses up to a certain limit or can also have an extra cash value and provide more coverage.

This type of insurance can cover the following:

  • Term child insurance – only up to a certain term (usually until your child reaches a certain age, such as 18, 21, or 25 years old)
  • Whole life insurance – converts to a regular insurance policy once the child reaches a certain age (usually 18 years old)


One benefit associated with getting whole life insurance whilst your child is still young is that you’ll typically pay lower premiums for lifetime coverage than what they might pay if you got the policy as an adult. 

It’s important to remember that like any other insurance plan, the premiums need to be paid on time to ensure that the benefit continues.


Who Can Buy Child Life Insurance?

The child’s parents (birth or adoptive), grandparents, and other legal guardians can buy the life insurance.

It can be done by directly processing the transaction with the insurer, through phone, an online shop, or a licensed agent.


Can You Insure Any Child?

Different insurers have different policies in terms of insurability.

Most insurance companies have a minimum age of around 14 days, but you can also find others that accept babies as young as 0-14 days. 

Many also offer coverage for up to 18 years, but others can cover up to 25.

Because insurance policies from different companies can change without prior notice, it’s best to ask your insurer of choice about their minimum and maximum ages for child life insurance.

Although most insurers don’t require a medical exam for your child to qualify for coverage, many will also look into their insurability. 

For example, a child with a disability or ailment that affects life expectancy might not qualify for life insurance.

Again, talk to your insurer because they might have certain products that offer limited protection, even if your child has health considerations.

For example, many insurers offer guaranteed issue policies. These don’t require answering a health questionnaire or getting a medical exam. However, they usually have a 2-3 year waiting period to take effect – and claims filed before the waiting period ends typically don’t get paid.

Also, this type of insurance can have higher premiums but lower coverage.


What’s The Best Life Insurance For Children?

When getting life insurance, especially for children, there’s no right or wrong, one-size-fits-all answer. It all depends on several factors, including your goals and needs, your capacity to pay, and your child’s insurability. Different families will have varying needs, circumstances, and requirements. 

It’s possible to get your kids their own insurance policies or add them to a family policy under a child’s term rider.

You can also consider variable life insurance to build up cash value on your child’s insurance policy.

We recommend you consult with your insurer or trusted insurance broker so they can assist you in figuring out the best life insurance setup for your family. Look for someone who takes the time to ask specific questions about your needs, capacity, goals, and plans.


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