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Life Insurance for Children

"What is life insurance for children?" "Is it worth purchasing?" Here’s an overview of some common questions regarding children’s life insurance to help you decide whether it’s right for you.

It’s a smart decision to purchase a whole life insurance policy for your child when he or she is young. If your child develops a specific medical condition or has poor health later in life, he or she won’t lose the coverage.

Can Children Get Life Insurance?

Yes, children can be covered with a life insurance policy. Typically, you’re most likely to find coverage for a child through a children’s whole life insurance policy. This policy pays out a death benefit if the unthinkable were to happen. It can start the day your bundle of joy is born and last throughout their entire lifetime, depending on the policy. 

Certain companies may offer a child “rider” option that can be added to your term life insurance policy. This would come at an additional cost and the child would be given his or her own benefit, usually at a smaller amount. If you opt to go this route, remember to check the age requirement, because it can vary by company.

Should I Get Coverage For My Child?

A common debate in the life insurance industry right now is whether children need life insurance. How necessary is it? Is it even worth it? It can be difficult to think about, but it is a question that must be considered.

If you are considering a whole life insurance policy for your child, think about the current state of your finances. Younger families may have different priorities than a new grandparent looking to leave a special something for their grandchildren.

Are your current financial obligations taken care of? Once you’ve looked at whether your finances are in check, you can then decide whether to purchase a life insurance policy for your child.

If something devastating were to happen, would you have the funds necessary to pay for a funeral, burial, medical bills, etc.?

These are all important questions to consider when thinking about ensuring financial security for your child.

Pros of Children’s Life Insurance

Even though policy benefit amounts and the buying process differ with each company, children’s life insurance can be very beneficial. Some pros of getting coverage for your child include:

Locking in affordable premiums

  • When applying for coverage, life insurance premiums are based on your child’s age and health. If you choose to purchase a policy, you can secure an affordable rate now and your child will be able to have the same policy for the rest of his or her life, with the same monthly payment.

Building cash value

  • Most life insurance polices offer a cash value benefit. Depending on the type of policy you have, every portion of your monthly bill goes into the cash value bucket of your policy. After a certain period of time, you can take this money out and use it for bigger life purcahses like paying for your chikd's college tuition or wedding. 

Future Insurability

  • When you purchase a life insurance policy for your child, depending on the policy, he or she is covered for the remainder of their life, regardless of future health conditions or problems. This can save your child lots of money in the long run. By the time your child becomes an adult with a family and is considering life insurance on their own, their insurabilty depends on their state of health at that time. 

No medical exam necessary

  • While adults are required to go through an exam process, children are typically not required to go through it. Usually, it only requires answering a few questions, so it’s less of a hassle to complete.

Things to Consider with Children’s Life Insurance

Despite the pros of children’s life insurance, some common concerns from parents include:
  • The fees that come with life insurance policies are not worth the cost
  • It’s expensive for something that is low risk
  • Statistically, the chances of a child passing away are slim
The decision to purchase life insurance for children is different for every parent. While it may be a priority to some, others may not see it as necessary. When it comes to insurance, each situation is unique and not “one size fits all.” Either way, it’s important to be well informed and to consider all of your options with your insurance company before making a final purchase.