Life Insurance for Kids: What to Know

life insurance for kids

Nowadays everyone is concerned about the long and healthy life of their children, and that’s why child life insurance mostly gets ignored. You may be surprised to know but life insurance for kids is something worth considering. 

Life insurance for a child is mostly purchased by a parent or their guardian to provide a safety net in case of the death of the child. Such types of policies are mostly term-based, lasting about the age when the child becomes an adult. However, you can also go for a permanent life insurance plan that allows lifetime access to the policyholder at a lower rate due to younger age. 

So it would be a smart move if you pursue a life insurance plan for your child at a young age, but you have to ensure that it’s according to your circumstances. In this blog, we will explore various aspects of life insurance for kids. Let’s get started! 

What is Life Insurance for Kids?

Life insurance for kids covers the life of your child and is usually offered in terms of whole or term life insurance plans. Whole life insurance offers coverage for the entire life of the policyholder while term life insurance gives coverage for a predetermined amount of time. 

One of the primary benefits of life insurance is its ability to provide support to our loved ones in case of any need. While taking life insurance for kids you have to focus on your intentions and reasons before going for a final decision. 

Best Life Insurance for Kids 

Here are some of the best life insurance plans for your child. Let’s have a look!

  • Getting term life insurance is a more affordable option as it covers your child for a specific time frame that usually lasts until he turns 18 or 21. 
  • If you are concerned about his education expenses or college savings, whole life insurance should be your priority. 
  • Another amazing option is permanent life insurance which is expensive but covers your child for his entire life. 

Moreover, while buying a policy you also have to decide who will be the beneficiary of the insurance policy. A simple rule to consider while getting a policy is that it should work at least ten times your annual income. For instance, if you are getting $50,000 a year, you may need an insurance plan offering a death benefit of at least $250,000.

Some factors that affect the cost of your policy are the age of your child, your residence state, and how much coverage you want from the policy. Additionally, you can add a rider to your plan in case you want extra protection. 

Should I buy Life Insurance for my Child? 

Getting a life insurance plan for your little one would be a great idea when you want to ensure a safety net for your family in case of your child’s death. You can also buy it to save your child from any financial problems in the future if he gets into some terminal illness. 

Some other advantages of getting life insurance for kids include potentially lower life insurance rates once they are adults and coverage for educational expenses. However, talking to some experts to understand the complications and limitations of the insurance plan would help when buying life insurance for your kid while they are young. 

Whole Life Insurance for Kids 

Whole Life insurance for children generally prefers a whole life insurance plan because it gives long-term coverage unless and until premiums are paid. While getting this policy, do not worry about getting the premiums high as the policy goes, premiums are guaranteed so they don’t increase with time. 

In addition, whole life insurance also offers a cash value component that is built from a portion of the premium. This portion of the policy can be accessed by the policyholder while he is still alive, no matter the reason. However, some life insurance companies also offer term insurance plans for kids. 

Buying a life insurance plan for your kid is a relatively easy and quick process as compared to buying a plan for an adult. Some insurers also offer quotes and a quick application online to get a free estimation. More excitingly, your child doesn’t have to go through a medical exam, which most companies require for adults. You just have to fill out an application and your child will get the insurance plan. 

Child Life Insurance Age Limit 

Typically, you can buy an insurance plan for a kid who is 17 or younger, the cap will be lower. For instance, for the Gerber Life Grow-Up Plan, the age limit is 14. However, the coverage remains in force throughout the life of the insured, as long as the premiums are paid. 

Being the owner of your child’s policy, you can transfer it to your kid at any point you want to. It’s very common and easy for parents to transfer insurance plans to their kids once they are adults. After that, the insured takes over the premium payments by himself. Mostly the child becomes the owner of the policy at the age of 18 or 21. 

Reasons to Buy a Life Insurance Plan for Your Kid 

The main purpose of buying a life insurance plan is the death benefit it provides after the untimely demise of an insured person. The lump sum amount (death benefit) will be paid to the designated beneficiaries. When you have young kids, it’s one of the most important considerations. What if something happens to you, your partner may not be able to work or have to look after your kids full-time. In that case, life insurance comes and makes sure your family will be taken care of financially if you are no longer available. 

Furthermore, parents can also use a life insurance plan as a college savings plan for their kids. They buy the policy when their baby is born and name themselves as a beneficiary. However, the death benefit of the policy can be used to pay his educational expenses. It can be a great way to start saving for school or education expenses early. 

Another worth mentioning reason for buying life insurance for your child is to provide coverage for burial and final expenses. In case something happens to your kid, you don’t have to worry about how you will pay for his funeral. The life insurance will cover these costs so that you don’t have to worry about an already emotional and grieving time. 


When to buy Life Insurance for Kids?

It can be hard to find what is the best time to get a life insurance policy for your child. However, if you are thinking about it, you have to consider these two key questions: 

  • Does your child have any medical condition that can impact him for the rest of his life? Or
  • Does your family have a medical history that can put your child at risk in his early life? 

If your answer to both these questions is yes, you have to go for the best life insurance options available for kids. want to know more about life insurance plans? explore our social media sites Facebook and Pinterest.

Summing Up 

If your budget allows you, buying life insurance for kids would be a great idea and investment for your child. But before making the final decision, assess your budget and look at your life insurance policy needs. Typically, your life insurance plan is much more important than your kids because the lump sum of your policy will help your family to cover your funeral costs and their daily life expenses in case of your sudden demise.