Should I Get Life Insurance For My Children?

If there is anything the coronavirus has taught, besides washing your hands, it is the importance of insurance because anything can happen at any time. It is that loud wake-up call that no one wants to hear but we all know it is necessary. 

Life insurance is the best financial plan you can have for the future. It provides a smooth landing ground should something happen to you, the sole provider of the family, which will make you unable to sustain the lifestyle of your loved ones. For this to happen, the insurance company gives a tax-free lump sum of money to your loved ones as per the policy. 

But how does a life insurance for the children help? This article breaks down the pros and cons of investing in life insurance of your child and why it is necessary: 

What is child Life Insurance?

Like any other life insurance, child life insurance, or life insurance for a child, is a contract between a child and an insurance company. When you choose an insurance package for your child, you are agreeing to regular premiums within the given term in exchange for coverage should the child die. If the child dies, the insurance company will pay you a death benefit that can be used as you choose to. It could be to help with the funeral plans to make your grieving period easy. 

As much as it is called child insurance, the coverage belongs to the policyholder who is the parent or guardian. In certain events, the policy can name a beneficiary who will receive the benefits should the insured child pass away. 

Ideally, life insurance policy for a child are whole life insurance policies as they are designed to provide a permanent coverage for the life of the child provided the policy remains active. A policy can only be kept active if the premiums, which are don’t increase with risks and age, are paid as regularly required. You should also note that the insurance policy comes with a cash value portion that the insured child can access when they are still alive. 

There is no a term life insurance policy for the child unless the parent or guardian buys the term life insurance and adds life insurance for the child as a rider. The best part about having child insurance as a rider is that you can cover all your children with one policy. However, when the children reach a legal age or the insured reaches a certain age, mostly 65+, the coverage expires. The child has the option of converting it into a permanent insurance policy at an additional fee. 

Factors Affecting the Cost of Insurance Policy for a Child

There is no one shoe fit all plan for all life insurance plans for children. Whether it is a rider added to life insurance or individual life insurance for your child, the price of the plan will vary depending on the following factors: 


The younger the child the more affordable the policy will be. When a policy is affordable, the guaranteed premiums will be lower for the rest of the time the policy is active. 

Amount of coverage 

The total amount of coverage you buy and the type of payment schedule you choose also affect the amount you will invest in the policy. For instance, if you choose coverage worth $500,000 and distribute it up to the age of 65, it will be expensive compared to setting your limit at 100 years. The higher the stretch gets, the more affordable premiums are. 

However, some insurance providers offer a standard limit based on payment plans you can insure the child. The plans may include 10-year, 20-year, and even 30-year plan. The point is to finish the payment plan before the given period elapses and the goal is to give your child a policy that is completely paid off. 

While considering the amount of the premiums sounds like a viable amount, aligning the policy plan with the cash value benefits should be considered. The cheapest might be attractive, but, will it give you value? 

The benefits of Buying Life Insurance for a Child

Every parent wants to know if what they are investing in their children will help keep them safe. While getting insurance on your child will not be the ultimate answer to shielding your child and yourself from al, the possible risks, investing in life insurance for a child has the following benefits: 

Guaranteed insurance cover

One of the biggest reasons why you should invest in the child insurance policy is that it is guaranteed. Whether the child develops health conditions later on in life or not, the insurance will remain active provided the premiums are paid. 

Guaranteed approval of adult insurance 

Often, adults are denied insurance due to increased risks or other ineligible aspects. Purchasing life insurance for your child when they are still young and healthy gives them a guarantee that they can acquire permanent insurance upon being adults whether or not they develop health conditions. They will also evade the medical exam or lengthy questionnaires subjected to every adult life insurance applicant. 

Affordable premiums 

Given that the number of premiums depends on the age and health of the child, the child’s life insurance premiums will be lower than they could have gotten as adults. Keep in mind that the older we grow, the more health and situational risks we expose ourselves to. 

Covered Funeral Expenses 

If the child passes away, the funds from the insurance policy will help cover the cost of the funeral expenses. Despite the chances of the child dying being so slim, knowing that everything will be covered is good. Death happens when you least expect it. The funds can also help a family in their grieving period, whether it involves taking a break from work, or counseling

The available cash Value 

Getting life insurance on your child comes with a savings account is known as cash value. This means that for contribution as premiums, a portion of it goes towards into the saving account, the cash value.  With low premiums and a longer period to save, comes bigger portions of the cash value which can be accessed at any time for any reason by the child. 

Disadvantages of Buying Life Insurance Child

Life insurance is meant to help with the economic consequences of the premature death of your child. While the death of a child, although rare, causes more emotional damage, it results in economic subjections.

If a child becomes ill, medical/health insurance caters for all the expenses needed. Alife insurance will only come in handy when it comes to clearing the hospital bills upon the death of the child. Besides these, life insurance for a child may have several disadvantages depending on the goals of the policyholder. These include: 

  • The policy offers low rates of return 
  • It’s a long-term commitment 
  • It Maybe characterized by lower coverage limits 


Although life insurance for a child doesn’t always make sense, it can be a good solution for some families. If you are a high-income family, using life insurance for the child sound like a viable way of transferring wealth to them.  It also makes the acquired wealth tax-free especially on the cash value portion of the investments policy. 

It is also a way of securing your child who has the possibility of acquiring genetic medical conditions like diabetes. This way you can guarantee them life insurance into their adulthood. 

If you want to determine if you should get life insurance for your child, consider talking to a financial planner. At Policyhub, we have financial experts and veterans of the insurance industry who are willing to give you all the necessary information. Using our up-to-date database, we will help you acquire the best insurance policy for your child should you decide to invest in it. 

Insurance Quote

    Insurance Type*



    Product Type*

    Primary Destination

    Pre-existing Medical condition*

    Start Date of Coverage*

    End Date of Coverage*

    Number of Visitors*

    Face Amount


    Personal Details:

    By using this form you agree with the storage and handling of your data by this website.