As parents, we go to great lengths to protect our children’s future—whether it’s setting up college savings plans, securing health insurance, or ensuring they have a stable home. But one financial tool that often goes overlooked is children’s life insurance. Many parents are unaware that they can purchase a life insurance policy for their child. Children’s life insurance benefits go beyond just providing a death benefit—it secures lifelong coverage, guarantees future insurability, and builds cash value over time.
In this guide, we’ll explore:
- What children’s life insurance is
- The benefits of purchasing a policy early
- Common misconceptions
- How much coverage costs
- How to get started
What Is Children’s Life Insurance?
Children’s life insurance is a whole life insurance policy that provides coverage for a child from infancy through adulthood. Unlike term life insurance, which expires after a set period, whole life insurance remains in place for life and builds cash value over time.
Many major insurers, including Mutual of Omaha, Royal Neighbors, and Gerber Life, offer children’s life insurance policies with affordable monthly premiums. Parents, grandparents, or legal guardians can purchase these policies, ensuring that their child has financial protection and guaranteed insurability for the future.
Benefits of Buying Life Insurance for Kids
- Locks in Low Rates for Life
- The younger a child is, the cheaper their insurance premiums will be. A $10,000 whole life policy for a 5-year-old may cost as little as $5 per month, a rate that remains the same even as they grow older.
- Guaranteed Insurability, No Matter What
- One of the key children’s life insurance benefits is guaranteeing a child’s future insurability, regardless of health conditions. Life is unpredictable. Some children develop health conditions, such as diabetes, cancer, or other chronic illnesses, that make it difficult or impossible to qualify for life insurance later. A children’s life policy can guarantee their ability to get more coverage in adulthood, regardless of their health.
- Builds Cash Value Over Time
- Whole life insurance accumulates cash value, which can be accessed in the future. By the time a child is an adult, they can borrow against the policy or even surrender it for cash if needed.
- Provides Financial Protection in Case of Tragedy
- No one likes to think about losing a child, but in the unfortunate event of an untimely passing, a children’s life insurance policy can help cover funeral expenses, medical bills, and time off work for grieving parents.
- A Meaningful Gift from Parents or Grandparents
- Instead of more toys or clothes, a life insurance policy is a long-term investment in a child’s future. Grandparents, in particular, often purchase these policies to create a financial legacy for their grandchildren.
Common Myths About Children’s Insurance
🚫 “My child doesn’t need life insurance because they don’t earn an income.”
✔️ While life insurance is often used to replace lost income, children’s life insurance is about more than just income replacement. It guarantees future insurability and provides a financial safety net.
🚫 “I can just get them life insurance later.”
✔️ That’s true—but health conditions that develop later in life can make it hard or even impossible to qualify. A childhood policy ensures they’re covered no matter what.
🚫 “It’s too expensive.”
✔️ In reality, children’s life insurance is extremely affordable. For just $5 to $10 per month, parents can secure a $10,000 to $20,000 policy that lasts a lifetime.
🚫 “I already have life insurance through my job.”
✔️ Employer-based policies don’t cover children, and they’re not portable—meaning they disappear if you leave your job.
How Much Does it Cost?
The cost of children’s life insurance depends on:
- The child’s age (younger children get lower rates)
- The coverage amount (common amounts are $5,000 – $50,000)
- The insurance provider
Here are sample monthly rates from a well known company for a whole life policy:
| Age | $10,000 Coverage | $25,000 Coverage | $50,000 Coverage |
|---|---|---|---|
| 5 Years Old | $5.43 | $10.75 | $19.66 |
| 10 Years Old | $6.13 | $12.10 | $22.30 |
| 16 Years Old | $7.75 | $15.26 | $34.00 |
(These are example rates—always check with an agent for current quotes.)
As a comparison- the average funeral costs over $7,000.00!
How to Get Started
- Choose an Insurance Provider:
- There are many popular options. Agents can help you compare rates and benefits.
- Determine the Right Coverage Amount:
- Most policies start at $5,000 to $50,000. Many policies include a Guaranteed Insurability Rider, allowing the child to purchase more coverage later without a medical exam.
- Get a Quote and Apply:
- Many policies can be issued quickly with no medical exam required.
- Review and Keep Up With Payments:
- Set up automatic payments to ensure the policy remains active.
Final Thoughts: Is Children’s Life Insurance Worth It?
When considering financial security for your child, children’s life insurance benefits provide an affordable and lasting solution. While it may not be a necessity for every family, children’s life insurance is an affordable way to protect your child’s future and guarantee insurability. If your family has a history of medical conditions, or if you simply want to ensure your child has lifelong coverage, this can be a smart financial move.
Interested in learning more? Contact SBG Insurance Group for a free quote and let us help you find the best coverage for your family.
