Best Life Insurance for Kids – Top Child Plans

Best Life Insurance for Kids

Last Updated on: May 30th, 2025

Reviewed by Dylan Whitman

When most people think of life insurance, they always picture a policy to protect their spouse or children financially if something happens to them. But have you ever heard about getting life insurance for kids? Yes, and it is more common than many realize. Life insurance for children has a unique place in a family’s long-term financial strategy.

Let’s get to know what child life insurance is, how it works, who it’s for, and whether it’s the right fit for your family.

Life Insurance for Children

Life insurance for children is a whole life policy bought by the parents for the children. These types of insurance policies offer a small death benefit that is usually between $5,000 and $50,000 if the child passes, but more importantly, the real benefit of this policy is that it builds cash value over time.

The adult life insurance mostly covers the financial responsibilities, but the kids life insurance is designed with future planning in mind. This insurance will help to cover the final expenses of the child.

Can You Get Life Insurance for Kids?

Yes, you can get a life insurance policy on a child, including your newborn. In fact, many insurance companies allow parents to buy a policy just a few days after their child is born. Generally, the minimum age is 14 days.

How Does Child Life Insurance Work?

Child life insurance similarly work as much like adult permanent life insurance:

  • Premiums are fixed and usually very affordable.
  • Coverage ranges from $5,000 to $50,000, sometimes more.
  • Cash Value builds savings over time and can be borrowed against later in life.
  • Guaranteed Insurability means the child can purchase additional coverage as an adult, no matter their health in the future.

Types of Life Insurance for Children

There are so many formats but we will discuss the most used

1. Children’s Whole Life Insurance

Children’s whole life insurance is the most common type of life insurance. It provides lifelong coverage and includes a cash value component that grows over time, tax-deferred. The policy builds a guaranteed savings reserve, making it a long-term financial tool. 

2. Children’s Term Life Insurance (Riders)

This is not a separate policy but an addition to a parent’s existing life insurance. It offers temporary coverage, usually until the child turns 25, and can often be converted into a permanent policy later on, regardless of the child’s health.

The Pros and Cons of Buying Life Insurance for Kids

Like any financial decision, child life insurance comes with benefits and drawbacks. Here’s a breakdown:

Pros

  • Lock In Low Rates: Premiums for children’s policies are extremely low and fixed for life.
  • Guaranteed Coverage for Life: Even if your child develops health conditions later, coverage remains intact.
  • Cash Value Growth: The policy can be a financial tool for education, a first home, or emergencies.
  • Financial Cushion: In the rare and tragic case of a child’s death, a life insurance payout can help with funeral costs and time off work.
  • Guaranteed Insurability Option: Most plans allow the child to buy more insurance as an adult, regardless of health.

Cons

  • Limited Financial Need: Children usually don’t have dependents or income, so the coverage may not serve a traditional financial protection role.
  • Investment Opportunity Cost: The cash value component grows slowly and may underperform compared to traditional investments.
  • Potential Misuse: Some families may mistakenly rely on the policy’s cash value instead of more strategic savings tools.

Cash Value Life Insurance for Child: A Long-Term Tool

The cash value in a child’s whole life insurance policy acts like a small savings account that grows over time. As the years go by, this cash can turn into a helpful financial support. Your child might use it to help pay for college, start a business, put a down payment on a first home, or even cover unexpected expenses in an emergency.

Life Insurance for My Child If I Die: What Are My Options?

If you are more focused on your child being financially protected if something happens to you, it is better to buy life insurance on yourself. That way, your child or their guardian will receive a death benefit to help cover living expenses, education, and other needs. Still, that doesn’t mean child life insurance is not useful. Some parents choose to have both: coverage on themselves for protection, and a child policy to support long-term planning and savings.

How Do I Get Insurance for My Child?

Buying life insurance for your child is a very simple process. You have to start with the first step, which is to go for a good reputation insurance company that provides the best plans with strong financial ratings.

Then, apply for a policy generally, only basic health information is needed, and there is rarely a medical exam. Next, select a coverage amount; most families go with $10,000 to $25,000. You will also need to name a beneficiary, which is typically the parent or legal guardian. Once everything is set, you will begin paying premiums that are often less than $10 a month for basic coverage.

Best Life Insurance Policy for Kids: What to Look For

When evaluating child life insurance, consider these criteria:

How Much Does Life Isurance Cost?

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  • Guaranteed Insurability Options
  • Low and Fixed Premiums
  • Strong Cash Value Growth
  • Flexible Policy Conversion Options
  • Reputation of the Insurer

Some of the best life insurance policy for kids comes from companies like:

  • Gerber Life
  • Mutual of Omaha
  • Globe Life
  • Foresters Financial
  • American Family Insurance

Do Children Need Life Insurance?

Taking the things in the traditional sense there is no need to have the child life insurance because they are not earning or they don’t have any dependents. However, taking it as a smart financial move can still be an option. Buying a kids life insurance policy will help to get covered for lifetime in terms of having the advantages of this policy that it builds cash value over time and can serve as a helpful tool for teaching kids about money and savings. But this totally depends on your long term goals.

Comparing Child Life Insurance Rates

Child life insurance rates are generally low. Here’s a sample chart for the better understanding:

AgeCoverage AmountMonthly Premium (Whole Life)
1$10,000$4–$6
5$25,000$8–$10
10$50,000$15–$18
15$25,000$9–$12

 

FAQs About Life Insurance for Kids

What type of life insurance is best for kids?

Children’s whole life insurance is the most popular option. It offers lifelong coverage, fixed premiums, and builds cash value over time. If you’re looking for lower-cost, short-term coverage, adding a child add-on to a parent’s life insurance policy is another good option.

Can you take life insurance on a child?

Yes, parents, legal guardians, and sometimes grandparents can take life insurance on a child. The child must meet the insurance company minimum age requirements.

Should I buy life insurance for my child?

It depends on your goals. If you want to lock in lifelong coverage, build cash value, or secure insurability regardless of future health, it could be a smart move. But if you’re mainly looking for income protection or investment growth, other financial tools may be a better fit.

What is the minimum age for child life insurance?

Most insurers require a child to be at least 14 days old. Some policies offer coverage for newborns once they’re discharged from the hospital.

Can I buy whole life insurance for my child?

Yes Whole life policies designed specifically for children are widely available and often very affordable.

Can a 12-year-old apply for life insurance?

A 12-year-old can be insured under a child life policy, but they can’t apply on their own. A parent or legal guardian must initiate and own the policy.

Final Thoughts

Life insurance for kids is not that much important for every family, but it can be a thoughtful part of a wider financial plan. But for some people, it’s about building financial security. And for some, it’s about peace of mind and future insurability.

Before making any decision while buying the kids or the adult insurance policy, take time to consider your family’s specific needs and long-term goals. And be sure to compare different policies to find the best child life insurance plan that fits your budget.

Ready to Protect Your Child’s Future?

Explore the best life insurance policy for kids today. If you’re looking to lock in low rates, secure guaranteed coverage, or build a financial foundation, a child life insurance plan could be the right step. Get free quotes from M-Life Insurance now and give your child a head start toward financial security.