Life Insurance makes sense for you because it gives your surviving family members financial peace of mind if you were to die.
But do your kids need coverage too? Consider Children's Life Insurance as one option parents use to protect a child's financial future.
Receive lifetime coverage by paying the monthly premiums so your children gain insurance for life. In many cases they won't need a health exam when they're older unless they want a larger death benefit.
Enjoy low rates because most policies use age to determine premiums. You typically pay less to insure young children, and many permanent policies lock in premiums for the life of the contract.
Most policies don't require children to undergo a complete medical exam, and kids are usually healthier than adults so coverage is commonly approved. This can be important if a serious medical condition runs in your child's family.
Permanent policies also build cash value as you pay premiums. That cash can grow at a fixed or variable rate, and by adulthood your child may have an accumulation to help pay for college, a down payment, or other goals.
While parents don't expect a child to die young, insurance can cover final expenses and protect family finances in the event of an accident or unexpected death.
Evaluate your budget carefully. Make sure you and other adults in the household have adequate coverage first, then weigh the benefits of a child's policy and talk to your agent about options that fit your finances.
Also consider alternative ways to save for a child's future, such as Roth IRAs for earned income or 529 college savings plans, as you choose the best approach for your family.
Frequently Asked Questions
How much coverage do parents typically buy for a child?
Coverage amounts for children are generally modest and focused on final expenses or small savings goals; amounts vary by policy and insurer.
Will a child's policy prevent them from getting insured later in life?
No, many child policies can remain in force and some can be expanded or converted to an adult policy without a new health exam.
Do child policies build cash value?
Permanent child policies often build cash value over time, which can be accessed later subject to the policy's terms.
What happens if a child has a family history of illness?
Because most child applications do not require full exams, family history may be less of a barrier, but underwriting rules differ by company.