Best Children’s Life Insurance Plans – Newborn Babies to Teenagers

There are many different opinions on the subject of life insurance for children. Some people insist that it’s a good investment, while others think it’s a waste of money. The truth is that it’s complicated.

Like many other financial questions, the answers will lie in your own particular situation. Luckily, we’re here to help you by answering the most complicated questions regarding life insurance for children.

By the time you’ve finished reading this article, you’ll have a clear understanding of how life insurance for children works, the available coverage options for children, and even a list of companies currently offering the best children’s life insurance plans.

Before we dive into why a child might need life insurance, let’s briefly cover what life insurance covers and why adults purchase life insurance coverage in the first place.

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Top 5 Life Insurance Plans for Kids in 2020

Company	AM Best Rating	Plan Name	Plan Type	Issue Ages	Best For	Details
Cincinnati Life	A+	Termsetter, Pivot UL & Whole Life	Term & Permanent	0-18	Multiple Options	LEARN MORE
Gerber Life	A	Grow-Up Plan	Permanent	0-14	Babies	LEARN MORE
Globe Life	A+	Young American Plan	Permanent	0-25	High Issue Ages	LEARN MORE
Mutual of Omaha	A+	Children’s Whole Life	Permanent	0-17	Pricing	LEARN MORE
Physicians Mutual	A	Juvenile Whole Life	Permanent	0-12	Simple Application	LEARN MORE

Read more:

• Gerber Life vs. Mutual of Omaha: Top Life Insurance
• Gerber Life vs. Oxford: Top Life Insurance
• Gerber Life vs. Prosperity Life: Top Life Insurance
• Gerber Life vs. Royal Neighbors: Top Life Insurance

Why do Adults Purchase Life Insurance?

An adult’s life insurance needs versus a child’s life insurance needs are entirely different. There are multiple reasons why an adult would need life insurance, but one of the most common reasons is to be able to provide financial protection to their family should they pass away.

If we take a quick look at a 2019 LIMRA Facts About Life Insurance poll, responses show that 66% of Americans surveyed chose to purchase life insurance to help replace lost wages/income should they suddenly pass away. The number one reason was to make sure their loved ones would have the funds to cover burial and final expenses.

When a wage/income-earning spouse unexpectedly passes away, their money earned from employment becomes lost. In many cases, a spouse lost income creates a financial hardship for the family, especially a family with young children. Without life insurance, the surviving family members could often struggle to maintain their current living standards.

A life insurance policy is an affordable solution in being able to protect against a potential financial hardship due to an unexpected death in the family. When a policyholder passes away, the beneficiary listed on the life insurance contract is paid a lump sum tax-free payment, which is commonly referred to as the death benefit.

The death benefit that a beneficiary receives from a life insurance policy can not only replace a spouse’s lost income but also provide the funds needed to help pay off debts and many other expenses. For example, continued mortgage payments, car payments, credit card bills, medical bills, and funeral costs can all be paid for by the fund’s life insurance provides.

Stay-At-Home Parents Need Life Insurance Coverage Too

Although the replacement of lost income is often a primary reason to purchase life insurance, it’s not only reserved for the income-earning family members.

Many families who have a stay-at-home parent will often overlook the total value that the parent brings to the family through the work they do at home. In many cases, they think that because they don’t earn a monetary income, they will not qualify for coverage.

A stay-at-home parent qualifies for life insurance coverage and should not be overlooked. Their job at home brings such a significant amount of value to the family that their death would create a financial burden.

Imagine the costs that would incur to replace stay-at-home parent’s daily home duties. Maintaining a home and performing child care can cost anywhere from $25,000 to $125,000 per year if you were to hire someone to take care of those duties.

When viewing life insurance through this lense, it’s easy to see why it makes sense for adults to have life insurance, but these needs wouldn’t relate to a young child. Therefore some people can’t comprehend paying for life insurance for their children. After all, it’s rare for a parent to need to rely on their children for income.

So why would you want a life insurance policy for your newborn, toddler, or teenager?

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5 Benefits Life Insurance Provides to Children

The greatest benefit that life insurance provides is financial protection against death. These are two similarities that life insurance shares with adults as well as children.

A life insurance policy for a child is not necessarily about providing a replacement of lost income but rather providing peace of mind to the parents of the child.

A death in the family whether it be an adult or a child will likely have an impact on a family’s finances. Life insurance helps lessen the financial burden that death causes by providing funds to help pay for unexpected expenses.

Lessening the financial impact that a child’s death could have on a family is just one of many benefits a child’s life insurance policy can provide.

Whether you have a newborn baby, toddler, or even a teenager we want you to know about these five amazing benefits of children’s life insurance.

Death Benefit Protection

Losing a child is an unbearable thought, but the sad reality is that it can happen. The cost of a funeral for an adult is no different than what it would cost for a child.

When you look at the data surrounding the cost of a full-service funeral with burial would be in 2020, the average tends to be in the range of $7,000 to $9,000. Cremation is also expensive ranging from  $3,000 to $4,000. Keep in mind that this is just an average cost and could be higher depending on location and any additional services.

The death of anyone, especially a child, can have a direct impact on a family’s savings. Family and friends can always help with these expenses by donating through crowdfunding platforms such as Gofundme. However, relying solely on crowdfunding from friends and family in a time of urgent need may not be the most reliable option, especially if there are not enough donors to donate.

A better and much more reliable option is through life insurance.

Child life insurance policies are generally smaller policies that range from $25,000 to $50,000. The life insurance amount can cover the costs of a full-service funeral and provide your family with financial stability during a challenging time.

Funeral expenses, medical bills, family counseling, can all be covered by a children’s life insurance policy. Depending on the plan, it may even provide a bit of money for the family if they need to take time off work to grieve. Caring for your own health after the death of a child is often overlooked, but it’s imperative to give yourself time.

Future Insurability

Purchasing life insurance when you’re young is always the best way to go. There is no financial expert who will disagree with that. When you’re young, you’re typically at the healthiest stage of your life. Because of that, insurance companies view you as less of a risk in having to pay out a sudden death claim.

The less of a risk you are to the insurance company, the cheaper your premiums are going to be. It’s a proven fact that our health declines with age. Many of us will begin to have minor health concerns such as high blood pressure or elevated cholesterol as we get older. Some of us will, unfortunately, experience high-risk health conditions such as diabetes or even cancer.

While most life insurance companies will provide coverage to many different health conditions, some are just uninsurable. As parents, we hope that our kids will live a long and healthy life, but there’s just no way of predicting what the future has in store for them.

A child who develops medical problems as they get older could have a problem getting insurance coverage as an adult. Purchasing a life insurance policy when your child is young and healthy is the best way to secure their insurability for the future. This is one of the number one reasons why parents choose to get insurance for their children.

Although most children’s policies are smaller in size, many of them offer the option to double in the amount of coverage when the child turns 18 at no additional cost. A few plans will even provide what is known as a guaranteed insurability rider that allows you to increase the death based on certain ages or special life events.

Purchasing a life insurance policy for your child will help secure your child’s future insurability from a potential change in their health.

Cash Value Growth

Most children’s life insurance plans sold today are permanent life insurance plans. Permanent life insurance offers a benefit that term insurance cannot, and that is a lifetime of coverage and its ability to earn “cash value.”

A policy that can grow in cash can act similarly to a child savings account that you would typically set up at a bank. With a savings account, you’re accountable in making sure that you contribute to the account as often as you determine.

On the other hand, with life insurance, it’s all done for you. Cash value life insurance works every time a premium payment is made for having the protection. The insurance company takes a small portion of the premium payment and puts it into the cash value savings account where it grows over time.

The idea of a cash value life insurance policy works perfectly for young children. The longer life insurance remains active, the higher the cash value will grow over time. Since most children will not require the need for the cash in their childhood years, the cash value account will generally have the needed time to grow.

Once a child has become an adult and has started their own family, the cash value that has accumulated from their children’s life insurance plan can become beneficial in many ways. The cash value can be used to help pay bills or even be used to help provide a downpayment for a purchase such as a car or home.

Accessing the cash value of a children’s life insurance policy can be done through either policy loans or by choosing to cancel and surrendering the life insurance policy entirely.

Policy loans are similar to borrowing money from the bank. Instead of borrowing money directly from the bank, you’re borrowing from the cash value of your life insurance policy.

Whereas bank loans require repayment of the loan in a specific timeframe, policy loans from the cash value account do not have a timeline as to when the loan needs to be paid off.

The money borrowed from the cash value account will require you to pay an annual interest rate that is generally 8% but can vary depending on the company.

The second option to obtaining the cash value of a children’s life insurance policy is through a cash surrender. Surrendering a life insurance policy means that you no longer wish to keep the life insurance coverage and would like to cancel it altogether for the cash value.

Surrendering a child’s life insurance policy is not uncommon when the child becomes an adult. Often, when a child has become an adult, their child life insurance policy will not meet their current life insurance needs, especially if they now have kids of their own.

Instead of having multiple life insurance policies, the children’s policy is surrendered for the cash value, and a new policy is purchased to meet their adult financial needs.

After filling out a simple surrender form that is provided by the insurance company, the policy will be terminated, and a check that is equal to the cash value minus any surrender charges will be mailed out to the current policyholder.

The money received will not require you to pay taxes as long as the cash value amount is not higher than the total amount of premiums paid for the coverage. In most cases involving child life insurance, this will generally not have occurred.

No Medical Exams Required

Children’s life insurance plans do not require a medical exam at all. These policies are underwritten with what is called simplified underwriting guidelines.

When a child applies for a life insurance policy, the application is completed by the parent. There are no exams, lab testing, or the need to even meet with an examiner.

Applications for coverage are simple and often consist of providing some basic information about your child, along with a health questionnaire. Eligibility for coverage is primarily based on responses to the health questions within the application.

They’re Inexpensive

Many factors go into the pricing of life insurance. Age and health are the two of the largest that insurance companies look at when determining the price. Children will benefit the most when it comes to overall affordability.

Since they are young and generally at the healthiest stage of their life, a child’s life expectancy has often not been affected by any health conditions. Because of this, the cost of a life insurance policy for a child is going to be inexpensive. Plans are so reasonable that they often cost a few pennies per day.

Along with an inexpensive premium, a parent can lock in their child’s rate for the rest of their life. Once the child is insured, the rates cannot change, and the younger the child is, the cheaper the insurance cost will be.

Types of Life Insurance for Children

Children’s life insurance plans are slightly different than most adult life insurance plans. Not every life insurance company will offer policies for children, but the ones that do will have often design the coverage to be exclusively for children applicants only.

The most common type of child life insurance is referred to as juvenile or children’s whole life insurance, which is a form of permanent insurance.

Another popular form of child life insurance is through a term insurance rider, which is purchased on a parent or legal guardian’s term insurance policy.

Traditional term insurance and traditional whole life insurance policies that would typically be purchased by adults can be another option for a child, but it’s not very common. The main reason is that most traditional term and whole life insurance policies have a minimum age of at least age 18.

Below we are going to discuss the different available types of children life insurance options your child will have as well as how the coverage provides protection.

Children’s Whole Life Insurance

The most popular form of children’s life insurance is called “children’s whole life insurance.” These plans are available to newborns as young as a few days old up to teenagers that are below the age of 18.

A children’s whole life insurance policy is a form of permanent life insurance. It provides a lifetime of protection while maintaining a low affordable fixed premium that is guaranteed to stay the same price from the first day the life insurance coverage is purchased.

Children’s whole life insurance plans are most comparable to the adult life insurance plans commonly referred to as “final expense” or “burial insurance” policies, which are frequently purchased by senior citizens. Both of these insurance plans offer many of the same features as they focus primarily on providing enough coverage to pay for funeral expenses in the event of a worst-case scenario.

Since replacement of income is not the main focus, the majority of children’s whole life insurance policies have a limited death benefit, which is often capped at a maximum of $25,000 to $50,000 depending on the insurance company.

In addition to a low affordable premium and coverage that will never expire, the life insurance plans also offer a guaranteed cash value benefit. Every time you make a premium payment, a portion of the payment will go into a cash value account, which is guaranteed throughout the duration of the coverage.

The majority of children’s whole life insurance plans offer the option to increase the initial insurance coverage once your child reaches a specific age, generally 18. For example, if the initial policy had a coverage amount of $25,000, that amount would automatically change to $50,000 without any new underwriting or even a change in the original premium.

Participating Children’s Whole Life Insurance

Most children’s whole life insurance plans are generally classified as non-participating whole insurance. What this means is that the insurance coverage offers a guaranteed cash value growth, but it does not participate in the ability to receive dividends.

Whole life insurance policies that offer a potential dividend are considered participating whole life insurance and are offered by mutual companies.

The best way to describe a dividend is to think of it as a bonus that is paid out from the insurance company to its policyholder. Dividend payouts are not guaranteed and typically only occur when the company has had a successful year (profits, new policyholders, interest rates, etc.).

Dividends, if paid out to policyholders, can be in the form of cash, reduced premium, additional insurance coverage, or put into the cash value account of the life insurance coverage.

Can a child get a participating whole life insurance policy?

Yes absolutely.

Some of the best whole insurance companies offer children insurance. However, these policies do tend to be a bit more expensive than traditional non-participating children’s whole life insurance policy.

A whole life insurance policy that participates in dividends has a significantly greater cash value accumulation potential than non-participating whole life insurance policies.

Children’s Term Insurance Rider

Probably the most affordable and convenient forms of children’s life insurance are through the use of a child term insurance rider or CIR for short. The rider is an optional feature that allows a parent to add term life insurance protection to all children (including stepchildren and adopted children) of the family under one policy.

From newborn children to teens up to age 18, all children of the insured can often be added to the parent’s term life insurance policy without having to take a medical exam.

The total amount of life insurance coverage that a child can have as a rider to a parent’s policy can range from as little as $1,000 to as high as $100,000 depending on the company providing coverage.

Coverage is often sold in units or increments of $1,000. The average annual cost per $1,000 of child term insurance tends to be around $5.50 per year, which is added to the parent’s overall insurance cost.

A child can expect to be covered on the parent’s term insurance policy up until they have reached the age of 25. Once a child has reached the age of 25, the term insurance rider will expire. When a term insurance rider does expire, most insurance companies will offer a conversion option.

The conversion option allows for the child term rider to be switched to their own individual permanent life insurance policy without having to go through any new medical underwriting requirements.

If your adult child does accept the conversion to their own permanent life insurance plan, they can often increase the total amount of coverage by 5x the amount of coverage of the child term rider.

Children’s Term Life Insurance

It’s not very common to find many life insurance companies who will offer a traditional term life insurance policy to a child under the age of 18. Most traditional term insurance policies require a minimum age of 18.

Age is one reason that can prevent a child from getting a traditional term life insurance policy, while the second is the coverage amount. Several term insurance companies only offer a minimum coverage amount of $100,000.

A $100,000 death benefit for a child is often considered to be rather high. When applying for any amount of life insurance, it must meet the insurance company’s financial justification guidelines.

For a newborn or any young child to require $100,000 or more of coverage, it does not generally make financial sense for a child to have that much coverage before they have reached the age of 18.

Therefore, traditional term insurance plans are often limited to adults only.

If you prefer a traditional term life insurance rather than the life insurance plans specifically designed for children, there are a select few life insurance companies that will consider insuring a child. Generally, they are companies that can offer death benefits that are as low as $25,000.

If you decide to purchase a traditional term life insurance policy for your child, as the adult parent, you will be required to be the owner of the policy until your child has reached the minimum eligible age to transfer over ownership.

A medical exam will not be required, and the maximum death benefit will most likely be limited to a specific amount that meets financial justification for a child.

Your Most Asked Child Life Insurance Questions Answered

Purchasing a life insurance policy on your child, children, or grandchildren is a big step in providing financial security that can last their entire lifetime. We understand that as a parent, you may have plenty of important questions about a child’s life insurance planning.

We have gathered up some of the most frequently asked children’s life insurance questions to help aid in the process of getting the best life insurance plan for your child.

• Ownership of a child life insurance policy
• How medical exams work with children plans
• Qualification for children with special needs or medical conditions
• When a child becomes an adult
• Age range for child life insurance plans
• Application process
• Child plans versus juvenile plans
• How the guaranteed insurability rider works for children
• How the conversion option works for child term riders
• Best companies for child life insurance coverage
• Overall amount of coverage a child can get
• Child life insurance rates
• Saving for college with life insurance
• Pros and cons of children’s life insurance plans
• How to shop and get a quote

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Who Can Purchase Life Insurance on a Child?

A child is not eligible to own their own life insurance policy until they reach the age of 18 or in some cases, age 16. Typically, life insurance for a child is purchased by the parents, grandparents, legal guardians, or step-parents of the child. Those eligible individuals would be considered to be both the owner as well as the payor of the policy.

Each of those parties named above would have what is known as a qualifying insurable interest. Insurable interest is a requirement when owning a life insurance policy on another individual.

Parents and grandparents have an insurable interest in their child or grandchild’s life insurance when they stand to be affected in some financial meaning should the child pass away. In most child insurance cases, the insurable interest is covering funeral expenses along with other expenses that could occur due to a child’s passing.

The owner of the life insurance policy has full control of the life insurance contract and is the only person allowed to make any changes to it. It is up to the parent or grandparent to decide whether or not they would like to transfer over ownership when the child has become an adult, but it is not required. The parent can remain the owner of the policy for however long they choose.

If the parent or grandparent does choose to hand over ownership when the child becomes an adult, a simple form called “release of ownership or change of ownership” will need to be signed by the current owner confirming the change. The form will also need to be signed by the new owner, which would be the adult child.

Read more: What Is Insurable Interest in Life Insurance?

Can an Adopted Child Have a Life Insurance Policy?

Yes. If you’re the parent or even grandparent of a legally adopted child, you can purchase a juvenile whole life insurance policy or even add them as a child term rider to provide them with protection.

As the legal guardian of an adopted child, you have a financial responsibility to the child until they are no longer considered a minor, which creates a qualifying insurable interest.

Can a Child Have their own Life Insurance Policy?

No, not technically.

Children’s life insurance requires that an adult parent or legal guardian be the owner of the policy until the child is of legal age to take over the policy.

In most cases, the child will need to be at least 18 years of age before the policy owner can be switched over to the child.

Do Children Need to take a Medical Exam for Life Insurance?

No child will be required to take a medical exam when applying for life insurance coverage as long as they are under the age of 18. You, as parents or guardians, will be required to answer any questions about the child’s medical history, but that’s all. No blood or urine samples are needed, either.

Since your child will not be required to have a medical exam, the application process is often referred to as a form of simplified underwriting. Simplified underwriting simply means that the application process is designed to be straightforward, with no medical exam being required.

Can a Special Needs Child Qualify for Life Insurance?

Although a child applying for life insurance will not be required to take a medical exam, it does not mean that every child will qualify for coverage. As with adults, certain medical conditions are, unfortunately, uninsurable.

To answer the question as to if a child with special needs can qualify for life insurance coverage will depend on a few factors. Underwriters will often look at both the severity of the medical condition as well as if there are any additional medical factors associated with the child’s overall medical history.

Special Needs Medical Conditions that are Insurable

There is no official list of special needs conditions that will or will not qualify for coverage. If you have a child with a special needs condition or any other medical condition, it’s always best to seek the help of an experienced agent.

The above is a small but common list of special needs medical conditions that are, in most cases, insurable.

• Cerebral Palsy
• Down Syndrome
• Autism

If your child has a medical condition, our recommendation is to work with an independent agent that can shop coverage from multiple life insurance providers.

A conversation about your child’s medical history will help the agent locate a company that will have the best chances of being able to cover your child.

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What Happens to the Life Insurance Policy When The Child Becomes an Adult?

In most cases, especially when it’s involving adult owned life insurance, the owner and the insured will generally be the same person, but this may not always the case. For example, there may be a time in which an adult child will need to purchase a life insurance policy on their parents.

In situations involving a minor child and a life insurance policy, the owner will always be the guardian or parent, while the insured would be the child. Ownership in a child’s life insurance policy can also be a grandparent as well.

When a child has reached the age of an adult (usually age 18), it is up to the parent or guardian if they would like to transfer over ownership to their child.

The transferring of ownership for a life insurance policy is not a requirement when the child reaches the age of an adult. The present owner can choose to remain the owner of the policy for as long as they wish.

The owner of the policy, however, is the only one who can make changes to the contract, not the insured. Even when the child has reached the age of an adult and decides they no longer want the life insurance coverage, they cannot cancel the coverage without the current owner signing off on it.

What is the Age Range for Children’s Life Insurance?

Most insurance companies that offer a child life insurance option will insure newborn children who are only a few days old. The cutoff for most children’s life insurance policies is 18 years old.

If adding a child onto a parent’s policy through a child term rider, the life insurance protection will provide coverage until the child turns 25.

What’s the Application Process Like and How Does it Involve the Child?

When applying for life insurance for a child, you don’t have to worry about medical exams, doctor visits, or blood samples. The child is not personally involved with the process at all.

As the parent, you will need to complete the entire application and answer all health-related questions pertaining to your child. All signatures will be handled by the parent and never will the child be required to sign any application forms as a minor.

Most applications for individual child life insurance plans are simple and can be done quickly online or in some cases over the telephone. If you’re old school and enjoy the snail mail option well that’s available too.

The health questions that you will need to answer on behalf of your child will vary from company to company but all of them tend to ask the following:

• Were any of the children born prematurely or with abnormalities at birth diagnosed by a medical professional?
• Within the past five years have any of the children listed above been treated or diagnosed by a physician for a respiratory disorder, heart disease or disorder, mental disease or disorder, or any other impairments or diseases?

Answering yes to the above question will not necessarily disqualify your child from receiving life insurance protection.

You will need to provide additional information such as the nature of the medical condition when the condition started, and the date the child was last treated for the condition.

The information will be reviewed by the underwriter and used to determine if approval can be made.

If Your Child Is Declined for Life Insurance Coverage

If your child has been declined for an individual life insurance policy due to a severe medical condition or any other reason, there may be other companies that will be willing to provide coverage.

This is one of the main reasons why you should work with an experienced life insurance agent rather than purchasing life insurance directly from the life insurance company.

If there are no life insurance companies that can provide coverage to your child due to an uninsurable medical condition, be sure to look into whether or not your employer offers a group life insurance plan. Some group plans may provide a guaranteed acceptance option to all family members of the employee.

Does a Child Need to Give Consent or Sign the Application for Life Insurance?

No, your child is not required to sign or consent to the insurance policy. Consent falls to the parents or guardians. All signatures on the application, including the HIPPA, will be completed and sign by the parent or legal guardian.

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What’s the Difference Between Child Life Insurance and Juvenile Life Insurance?

Sometimes you’ll see the term “juvenile life insurance” used to describe life insurance policies. There is virtually no difference between juvenile and child life insurance policy. The two phrases are often used interchangeably in the insurance industry.

What is a Child Guaranteed Insurability Rider?

A guaranteed insurability rider or GIR for short is an optional policy feature or policy rider that can be added to the life insurance contract.

The policy rider offers the policy owner the option to purchase additional death benefit coverage on the insured without having to provide proof of insurability.

Most children guaranteed insurability riders can be found on permanent life insurance plans such as juvenile whole life insurance. It is also an option that is available on many adult whole life insurance plans as well.

The option to purchase additional life insurance coverage with the guaranteed insurability rider works in two ways. The first option is based on specific ages set within the life insurance contract.

For example, a life insurance contract with the guaranteed insurability rider may offer the option to increase the total amount of coverage when the insured has reached the ages of 25, 28, 31, 34, 37, 40, 43, or 46.

Every time the insured reached one of the ages set within the contract, the insurance company will send out a notice with generally a 60-day window in which additional coverage can be purchased.

A second option to increase coverage with the child guaranteed insurability rider is based on certain life events. These life events may include marriage or even the purchase of a new home.

The rider will often allow the policy owner to purchase an additional $5,000 to $25,0000 of extra coverage when the insured has reached one of several qualifying ages or life event occurrences.

Choosing to add additional coverage through the rider will not require any new underwriting, but it will increase the premium since you will be adding to the overall coverage amount.

What is a Child Life Insurance Conversion?

A conversion is a policy feature that applies specifically to term life insurance policies. It allows for the term insurance policy to be switched to permanent life insurance coverage without providing any evidence of insurability.

When it comes to children’s life insurance, the conversion option is commonly associated with the child term insurance rider.

A child that has been receiving life insurance coverage under their parent’s term insurance policy will often have the option to convert the term rider into their own individual permanent life insurance policy when they have reached the age of 25.

Most child life insurance conversions will also offer the option to increase the total amount of coverage the child was receiving on their parent’s policy by 5x the amount.

For example, let’s say your child’s current coverage on the term insurance rider is $50,000. Should the child choose to exercise the conversion option when they have reached the age of 25, the coverage can be converted up to a $250,000 permanent life insurance policy.

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Who are the Best Children’s Life Insurance Companies?

To determine the best children’s life insurance companies, we must look at many different factors. A couple of the most significant factors include the amount of coverage, affordability, type of insurance, and the insurance company’s ratings.

Whether you’re looking to purchase a children’s whole life insurance or add your child to your own term insurance policy through a child term rider, we’ve compiled a list of the overall best children’s life insurance companies to choose from in 2020.

Top 5 Best Children’s Life Insurance Companies in 2020

• Cincinnati Life: Termsetter, Pivot UL & Guaranteed Whole Life
• Gerber Life: Grow-Up Plan
• Globe Life: Young American Whole Life
• Mutual of Omaha: Children’s Whole Life
• Physicians Mutual: Juvenile Whole Life

Cincinnati Life Insurance

• Three different life insurance plans to choose from
• Only company to offer individual term life insurance option
• Up to $250,000 with no medical exam
• Adult sized policy with child rates

Cincinnati Life Insurance is one of the few life insurance companies to offer three different life insurance options for children. Where term life insurance is nearly impossible to obtain for a child, Cincinnati Life has made it possible with its Termsetter policy.

With Cincinnati Life, children as young as 15 days old up to age 17 will be able to apply for their own individual term life insurance policy. Coverage amounts range from $25,000 up to $249,999 with available contract lengths ranging from 10 years up to as long as 30 years.

Every child covered under a Cincinnati term life insurance policy will receive protection under the Accelerated Benefit Rider, which allows for early access to the death benefit if diagnosed with a terminal illness or confinement to a nursing home.

A final feature offered on the child term insurance coverage is the conversion benefit. A child will have the option to convert their term insurance well into their adult years to one of Cincinnati Life’s eligible permanent life insurance products without having to provide evidence of insurability.

In addition to an outstanding children’s term life insurance option, Cincinnati Life offers two permanent coverage options with its Juvenile Pivot UL and Guaranteed WL.

Pivot UL is a universal life insurance option that offers low affordable premiums, flexibility, and potential cash value growth. The permanent life insurance plan is available to children as young as 15 days old up to 17 years old. Plans start as low as 35,000 and can go over $100,000 as long as financial justification can be established.

The cash value growth builds based on a minimum guaranteed interest rate that will never be less than 2%. Premiums are flexible, meaning that if you decide to skip a few payments as long as there is cash value, the payment will be deducted from the cash account.

Multiple riders can be added to the coverage, but the two that really stand out are the Insured Insurability Rider and Chronic Illness and Terminal Illness Accelerated Benefit Rider.

The Insured Insurability Rider guarantees the option to purchase additional coverage at future ages. At the same time, the Chronic and Terminal Illness rider provides early access to the death benefit due to a qualifying illness.

Guaranteed Whole Life is a second permanent children’s life insurance option offered by Cincinnati Life. The whole life insurance coverage is available in plans that start as low as $10,000 and has many various optional benefit riders.

For starters, the whole life insurance coverage includes four different payment options to choose from. There is a traditional level pay, which requires premium payments up to age 100, or you can choose from three limited pay options such as a 10-pay, single pay, paid-up at age 65.

Many of the optional policy riders and benefits offered on the other plans are available with the whole life insurance option. One that is exclusive to the whole life insurance coverage is the Paid-Up Life Insurance Rider. Adding the Paid Up-Up Life Insurance Rider can increase both the death benefit and overall cash value through the purchase of additional paid-up life insurance.

What is the difference between the two permanent plans?

Whole life insurance is structured differently than universal life insurance. With whole life insurance, you know how the policy works upfront. The premium payment is locked in for the duration of the contract, and you even know what the cash value growth will look like each year.

On the other hand, universal life insurance can be a little unpredictable. The premium payments can change, and cash value accumulation is not guaranteed. However, universal life insurance is often the cheaper of the two permanent options.

Children’s Termsetter Life Overview
Children’s Pivot Universal Life Overview
Children’s Guaranteed Whole Life Overview
Children’s Termsetter Life Overview

Plan Name: Termsetter
Coverage Type: Term Life Insurance
Age Availability: 0-17
Coverage Amounts: $25,000 – $249,999
Contract Length: 10, 15, 20, 25 or 30 years
Fixed Premiums: Yes, but only for the duration of the selected contract length.
Medical Exam: Not Required
Unisex Rates: No
Cash Value Potential: None
Included Policy Features: Accelerated Benefit Rider
Optional Policy Features: Accidental Death Benefit Rider, Disability Waiver of Premium Rider

Children’s Pivot Universal Life Overview

Plan Name: Pivot UL
Coverage Type: Universal Life Insurance
Age Availability: 0-17
Coverage Amounts: $35,000 – $100,000+
Contract Length: Lifetime
Fixed Premiums: Flexible premiums with 5-year no lapse guarantee protection
Medical Exam: Not Required
Unisex Rates: No
Cash Value Potential: Yes
Included Policy Features: Accelerated Benefit Rider
Optional Policy Features: Chronic and Terminal Illness Rider, Accidental Death Benefit Rider, Disability of Monthly Deduction Rider, Insured Insurability Rider

Children’s Guaranteed Whole Life Overview

Plan Name: Guaranteed Whole Life
Coverage Type: Whole Life Insurance
Age Availability: 0-18+
Coverage Amounts: $10,000 – $100,000+
Contract Length: Lifetime
Fixed Premiums: Yes
Medical Exam: Not Required
Unisex Rates: No
Cash Value Potential: Guaranteed
Included Policy Features: Accelerated Benefit Rider
Optional Policy Features: Accidental Death Benefit Rider, Chronic and Terminal Illness Rider, Disability of Waiver of Premium Rider, Insured Insurability Rider, Paid-Up Life Insurance Rider

For additional information, please be sure to visit our Cincinnati Life Insurance Company Review.

 

Gerber Life Insurance for Babies

• Up to $50,000 in coverage
• Coverage automatically doubles during age 18
• Premiums are guaranteed to never increase as long as premiums are paid
• Guaranteed purchase options available as an adult
• Cash value grows as long as premiums are paid
• No health exam is required
• Optional payment protection available on the policy owner at an additional cost

There is no argument that Gerber is the face of children’s life insurance. The same company that produces the well-known baby food with that famous iconic baby face logo also offers one of the best children’s life insurance products known.

A quick online search for “baby life insurance” or “children’s life insurance,” and your first results is going to be Geber Life and rightfully so. With over $50 billion in in-force life insurance coverage, the insurance company continues to dominate the children’s life insurance market with their ever so popular Gerber Grow-Up Plan.

Gerber Grow-Up Plan is a children’s whole life insurance plan that is available to newborns up to children 14 years old. Rates are locked in as soon as the policy is purchased and are guaranteed never to increase.

When the child has reached 18, the death benefit automatically doubles without any requirement for proof of insurability or an increase in rates. You get double the coverage at the same price you have been paying when you first purchase coverage.

The only time rates could change is if you choose to add the optional Guaranteed Purchase Option Rider. The rider is what is often referred to as guaranteed insurability coverage, and it allows for the original coverage amount to be increased at certain ages.

Gerber’s Grow Up Plan offers coverage amounts that range from as small as $10,000 to as high as $50,000. Keep in mind that whatever amount you choose will double automatically when your child turns 18.

The overall coverage can easily reach up to $400,000 of additional coverage when the child has reached age 40 as long they choose to keep purchasing the extra protection provided from the Guaranteed Purchase Option Rider.

A final feature offered with the Gerber Grow-Up Plan is the guaranteed cash value growth. For every premium payment made, Gerber will put a small portion into a cash value account that will grow over time.

Gerber’s Children’s Grow-Up Plan Overview
AM Best Rating:	A
Coverage Type:	Whole Life Insurance (Non-Participating)
Age Availability:	0-14
Coverage Amounts:	$10,000-$50,000
Contract Length:	Lifetime
Fixed Premiums:	Yes
Medical Exam:	Not Required
Unisex Rates:	Yes (Except in CA & FL)
Cash Value Potential:	Guaranteed
Included Policy Features:	Guaranteed Insurability
Optional Policy Features:	Guaranteed Purchase Option, Payment Protection Option

For additional information, please be sure to visit our Gerber Life Insurance Company Review.

 

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Globe Life
$1 Children’s Whole Life Insurance

• Choose from $5,000, $10,000, $15,000, $20,000, $25,000 or $30,000
• Pay only $1 for the first month of coverage
• No medical exam or physical exams
• Coverage starts the first day with no waiting periods

If you’re a parent with children, there is a good chance you have received or will be receiving a direct mail piece from Globe Life soon. Within that marketing piece, you’re likely to see “$1 buys $30,000 whole life insurance for children.”

Well, we will let you in on a little secret, the $1 is just for the first month’s premium. After that, the cost will be at the rate based on your child’s present age but will remain the same price for the rest of their life.

Globe Life is another large life insurance company with excellent ratings and reviews. They are well known for their direct marketing through the mail, which advertises low-cost life insurance plans for all age groups, especially children and seniors.

The child whole life insurance offered by Globe Life is available in coverage amounts as low as $5,000 to as high as $30,000. Advertised on the company’s website, you’ll notice rates for as little as $2.17 per month, but to be fair, the $2.17 monthly price would be for a child age 0-7 with a coverage amount of $5,000.

When compared to some of the other children’s plans available, Globe’s whole life insurance does lack some of the common features and benefits that other child plans offer. For example, they do not offer a guaranteed insurability rider that would allow them to add additional coverage at later adult years, nor does the benefit double when the child reaches a specific age.

However, what makes Globe Life the best choice for children’s life insurance in addition to overall price are their high issue ages. Globe children’s whole life insurance is available to newborns and goes as high as age 25.

While most children’s plans are limited to applicants that have reached the age of 18 and in some cases younger, Globe will insure applicants up to age 25 and consider them at child rates, which are unheard of.

For lower-income families, Globe Life can be a perfect option. Rates for the child’s plans, as well as the adult plans, are very reasonable, and the application is literally half of a page.

Globe Life Young American Whole Life Overview
AM Best Rating:	A+
Coverage Type:	Whole Life Insurance (Non-Participating)
Age Availability:	0-25
Coverage Amounts:	$5,000-$30,000
Contract Length:	Lifetime
Fixed Premiums:	Yes
Medical Exam:	Not Required
Unisex Rates:	Yes
Cash Value Potential:	Guaranteed
Included Policy Features:	None
Optional Policy Features:	None

For additional information, please be sure to visit our Globe Life Insurance Company Review.

 

Best Value: Mutual of Omaha
Children’s Whole Life Insurance

• Available for ages 14 days to 17 years, in face amounts of $5,000 to $50,000
• Whole life – policy matures at age 100
• No medical examination required
• Rates never increase with age
• Benefits never decrease
• Cash value that builds over time
• Additional coverage may be purchased in the future without evidence of insurability
• Easy payment options

You want the best life insurance plan for your child, and we are going to help you get that by letting you in on a little secret, it’s Mutual of Omaha.

While Gerber Life has the overall brand recognition and offers excellent children’s whole life insurance policy, Mutual of Omaha, in our opinion, has the overall edge in being the best life coverage for children.

The two, Gerber Grow-Up Plan and Mutual of Omaha Children’s Whole Life offer nearly the same benefits. Both are tailored for children, both are whole life insurance, and both provide guaranteed cash value growth.

However, with Mutual of Omaha, their coverage is priced much less than Gerber’s Grow-Up Plan, in many cases, up to 50% less. Mutual of Omaha also offers a $5,000 minimum coverage option, whereas Gerber Life is $10,000.

Although Mutual of Omaha’s children’s whole life insurance will not double in size when the child turns 18 like the Gerber Grow-Up Plan, it does come with a free guaranteed insurability rider.

The insurance rider allows for the death benefit to be increased at five different times. This includes certain ages and life events like marriage or even the purchase of a new home.

One final benefit offered with the Children’s Whole Life Insurance coverage is another free policy rider called the Waiver of Premium Due to Death of Owner Rider. The insurance rider waives all premium payments for 90-days should the policy owner pass away.

Mutual of Omaha Children’s Whole Life Insurance Overview
AM Best Rating:	A+
Coverage Type:	Whole Life Insurance (Non-Participating)
Age Availability:	0-17
Coverage Amounts:	$5,000-$50,000
Contract Length:	Lifetime
Fixed Premiums:	Yes
Medical Exam:	Not Required
Unisex Rates:	Yes
Cash Value Potential:	Guaranteed
Included Policy Features:	Guaranteed Insurability Rider, Death of Policy Owner Waiver of Premium Rider
Optional Policy Features:	None

For additional information, please be sure to visit our Mutual of Omaha Life Insurance Company Review.

 

Physicians Mutual
Juvenile Whole Life Insurance

• Available for ages 14 days to 12 years, in face amounts of $5,000 or $10,000
• No medical examination required
• 31 day free look period
• Death benefit automatically doubles at age 21
• Protection increases at ages 22 and 27
• 5% premium discount when paying monthly bank draft

Physicians Mutal offers a juvenile whole life insurance plan that is available to newborns as young as 14 days old to young teens age 12. The life insurance coverage is only available in two amounts of either $5,000 or $10,000.

While we will admit that Physician’s Mutual may not be our first choice when it comes to children’s life insurance, the insurance company is not a bad choice and can offer some unique features.

For starters, the juvenile whole life insurance plan is priced very affordable compared to some of the other children’s providers despite only having two coverage amounts to choose from.

The application is incredibly simple and consists of just one simple health question that will determine eligibility for coverage. If your child is approved for coverage, the first month’s premium payment will only be $1, which is identical to what Globe Life chargers of its children’s plan.

Physicians Mutual’s juvenile whole life insurance coverage automatically doubles in size when the child turns 18 without any increase in cost. The child will also be provided an opportunity to increase the overall amount of coverage up to $100,000 when they turn 22 and again at age 27.

Physicians Mutual Juvenile Whole Life Insurance
AM Best Rating:	A
Coverage Type:	Whole Life Insurance (Non-Participating)
Age Availability:	0-12
Coverage Amounts:	$5,000 or $10,000
Contract Length:	Lifetime
Fixed Premiums:	Yes
Medical Exam:	Not Required
Unisex Rates:	Yes
Cash Value Potential:	Guaranteed
Included Policy Features:	Guaranteed Insurability Rider
Optional Policy Features:	None

For additional information, please be sure to visit our Physicians Mutual Insurance Company Review.

 

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Top Term Life Insurance Companies That Offer A Child Term Rider Option

Moms and dads, if you need life insurance and are looking to insure your whole family, consider looking into adding a child term rider. To help you choose the best plan we have put together a chart of the top term life insurance companies that offer a child term rider options.

Top 5 Picks for Child Term Rider Coverage

• Banner Life
• Principal
• Protective
• Prudential
• Transamerica

Companies	AM Best Rating	Plan Name	Issue Ages	Rider Amounts	Medical Questions	Rider Termination	Conversion Option	Rates
AIG	A	Select-A-Term	15 Days to Age 18	$500 – $25,000	Required	Age 25	None	Get Quote
Assurity	A-	Term Life Insurance	15 Days to Age 18	$1,000 – $25,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
Banner Life	A+	OPTerm	15 Days to Age 18	$5,000 or $10,000	Not Required	Age 25	Yes, 5x Original Benefit	Get Quote
Cincinnati Life	A+	Termsetter	15 Days to Age 18	$10,000 or $20,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
Foresters	A	Your Term	15 Days to Age 18	$10,000 – $25,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
Lincoln Financial	A+	TermAccel 2019	15 Days to Age 18	$1,000 – $15,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
Mutual of Omaha	A+	Term Life Answers	15 Days to Age 20	$1,000 – $10,000	Required	Age 23	Yes, 5x Original Benefit	Get Quote
Nationwide	A+	YourLife	15 Days to Age 20	$5,000 – $25,000	Required	Age 22	None	Get Quote
North American	A+	ADDvantage	15 Days to Age 19	$5,000 – $25,000	Required	Age 23	Yes	Get Quote
Pacific Life	A+	Promise Term	15 Days to Age 18	$1,000 – $10,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
Principal	A+	Term Insurance	15 Days to Age 18	$5,000 – $25,000	Not Required	Age 25	Yes, 5x Original Benefit	Get Quote
Protective	A+	Classic Choice	15 Days to Age 18	$1,000 – $25,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
Prudential	A+	Term Essential	15 Days to Age 18	$1,000 – $100,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
Sagicor	A-	Sage Term	15 Days to Age 19	$2,000 – $20,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
SBLI	A	Level Term	15 Days to Age 22	$10,000 or $20,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote
Transamerica	A	Trendsetter	15 Days to Age 18	$1,000 – $99,000	Required	Age 25	Yes, 5x Original Benefit	Get Quote

How Much Life Insurance Coverage Can a Child Get?

A child’s life insurance needs are going to be very different from an adult’s life insurance needs. Young children do not require the larger amounts of life insurance coverage most adults would normally need to financially provide for their families.

Since child life insurance needs will not be the same as an adult’s life insurance needs, life insurance companies will limit the total amount of coverage that can be purchased for a child.

Most children’s whole life insurance plans generally offer coverage starting as low as $10,000 and can go as high as $50,000. Term insurance riders can offer a little more in coverage often ranging as high as $100,000.

There are times in which parents will require coverage higher than what a traditional children’s whole life or child term rider can offer. In these cases, higher death benefit amounts can be possible with an individual term or whole insurance policy but it will require financial justification.

Financial justification requires a detailed explanation to the underwriter as to why the child is requiring a higher amount of coverage than what is considered justifiable for a child.

How Affordable is a Child’s Life Insurance Policy?

Parents will have a few different plan options to choose from when considering a children’s life insurance policy. Regardless of the life insurance plan you choose for your child, all of them tend to be very affordable.

Children are viewed as a low risk to the insurance company having to pay out a claim due to a health risk. Their life expectancy is at its highest as a child, and in return, the insurance companies price coverage at lower rates than what an adult will pay for their coverage.

Child Life Insurance in Ranking Order Based On Affordability

• Child Term Insurance Rider
• Traditional Term Life Insurance
• Juvenile Whole Life Insurance
• Participating Whole Life Insurance

Child Term Rider Sample Rates

The below chart represents an example of what the monthly cost would be to add a child to an adult’s term life insurance policy as a child rider. Child term rider rates are not based on age or gender but rather units. Each $1,000 is equivalent to 1 unit.

Age	$5,000	$10,000	$15,000	$20,000	$25,000
0-18	$2.40	$4.80	$6.25	$8.33	$10.41

Child Term Life Insurance Sample Rates

The below chart represents an example of what the monthly cost would be for a male child ages 0-18 to have an individual term life insurance policy. For this example, we used Cincinnati Life and its Termsetter life insurance plan. The quotes have been run at the highest health classification for a child, which in this case would be “standard non-smoker.”

Age	$25,000	$50,000	$100,000	$200,000
0-18	$9.02	$11.44	$15.14	$23.67

Juvenile Whole Life Insurance Sample Rates

The below chart represents an example of the monthly cost for a child to have a juvenile whole life insurance plan. For this example, we used the rates from Mutual of Omaha’s Children’s Whole Life Insurance plan. Rates are not based on a specific gender as the coverage is based on unisex rates.

Age	$5,000	$10,000	$15,000	$25,000	$50,000
0-4	$2.50	$4.00	$5.50	$8.50	$15.99
5-9	$2.50	$4.80	$6.70	$10.50	$20.00
10-14	$3.25	$5.50	$7.75	$12.25	$23.50
15-17	$3.95	$6.90	$9.85	$15.75	$30.50

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Can a Child’s Life Insurance Policy Provide Enough Cash Value to Cover College Expenses?

Many children’s life insurance plans are marketed as a way to help pay for college expenses.

The truth is if the main reason you’re looking into a children’s whole life insurance policy is to save money for college, you should check out some other alternatives. It’s highly unlikely that any cash value whole life policy will provide enough money to cover two years let alone four years of college expenses.

It’s important to keep in mind that cash value growth works every time a premium payment is made. A portion of the premium payment is split and placed into the cash value account which will grow over time.

Since juvenile life insurance plans are already inexpensive, the portion of the premium payment that goes into the cash value account is not a large amount. For this reason, children’s whole life insurance policies require several years to grow in value.

Instead, you’re better off combining an insurance term rider and one of the alternatives below. With a term rider attached to your policy instead of a whole life policy, you can save money to invest in your child’s education.

What Are Some Alternatives to Children’s Life Insurance?

If you’re simply looking to start a cash growth savings account for your child’s education, you’re probably better off choosing one of the options below.

However, if you still want to insure your child, you can do so with any one of the cash building life insurance plans. Just keep in mind that the cash value growth from the life insurance policy will likely not be enough to pay for college.

529 Plan

529 plans are the most common alternative to a cash value whole life insurance policy. You can use the tax-advantaged 529 savings plan to pay for higher education, K-12 tuition, or apprenticeship programs. Each state has its own 529 plan, so they’re all a little bit different. You are free to start a 529 plan in any state, even if you don’t live there.

Technically, you can use the contributions in a 529 plan for any reason, but only using the funds for qualified education expenses allows you to avoid paying taxes. Since 529 plans are, by design, invested in mutual funds, you’ll want to do some research to get the best plan possible.

Is a 529 Plan Better than Whole Life Insurance Policy for a Child?

As far as cash accumulation is concerned, yes, a 529 plan is better than a whole life insurance policy for a child. However, they provide no protection in the event of a worst-case scenario. For many, it’s best to have some form of life insurance, usually a life insurance rider on an adult’s policy.

Education Savings Account (ESA)

Like a 529 plan, ESA’s are investment vehicles for education purposes. But, unlike 529 plans, you can choose to invest in stocks, bonds, or mutual funds. The beneficiary must use the education savings account by age thirty. There’s also a yearly contribution limit of $2,000 per year in an ESA. Once again, this option requires some research or possibly some professional investment help.

Uniform Gift to Minors Act (UGMA)

The UGMA allows for the transfer of financial assets to a minor, usually used to avoid the expensive and time-consuming task of setting up a formal trust. An adult retains control of the account until the minor is of age to take possession of it. Assets that you allocate under the uniform gift to minors act are not tax-free but are taxed at a lower rate, up to a certain amount.

Crowdfunding (GoFundMe)

Although not the best option to fund your child’s education, crowdfunding is an option if you need it. People are very willing to give a little, but it’s not something to depend on for emergencies. Crowdfunding should be a last resort if, heaven forbid, something terrible happens.

Self Savings

A self savings account can be a better choice for putting money away for your child’s future. There are plenty of options out there, and some banks are even offering 1.9% interest on savings accounts. However, you’ll want to be clear on any yearly fees or limits before deciding on a savings account.

Is Children’s Life Insurance a Waste of Money?

Deciding on whether or not to purchase a children’s life insurance policy can be a confusing decision. Statistics show that only 4 in 10 children under the age of 18 own any life insurance.

Could the internet have something to do with these low numbers? It’s very possible.

The internet is loaded with many conflicting articles on the subject of children’s life insurance, some of which are favorable and others that are not so favorable towards the subject.

Many arguments as to why you shouldn’t purchase a life insurance policy on a child often stem around it just being a bad investment in your money.

We have reviewed many of these online articles on the negativity of children’s life insurance listing below the most common downsides of child life insurance policies.

What are the downsides of children’s life insurance?

Low Cash Value Growth: The number one most negative review about child life insurance revolves around plans that offer cash value growth.

You’ll notice that a strong selling point to these plans promote how they accumulate cash that can be borrowed from and used to help pay for college expenses or any other unexpected expenses.

The problem, cash value growth on children’s life insurance plans is nothing to get too excited about. The growth in cash often takes several years to accumulate, and even then, it would be rare that that value would ever be more than your total investment of all the premiums that you will end up paying into the coverage.

Many financial advisors will advise against a child life insurance plan if your main objective is saving for your child’s education or building a small nest egg that they use in the future.

Investing the premiums that you would have otherwise spent on a child’s life insurance policy will often have a better return in an interest-sensitive account such as a 529 account or a personal savings account.

Coverage Doubles: Coverage that automatically doubles once the child has reached the age of an adult would generally be considered a positive. However, in most cases, when your child becomes an adult, it will most likely be an insufficient amount of coverage, especially if they have a young family of their own.

If you insured your child at $50,000 and the insurance company offers to double the coverage when they become an adult automatically, that amount would be $100,000. At that amount, it’s often significantly less than what most families need. A young family with children can quickly require up to a million dollars in coverage.

Not Necessary: Fortunately, childhood death has significantly been on the decline over the years. From 1950 to 2015, the child mortality rate dropped from 22.5% to 4.5% worldwide. We now have to worry less about our children dying at a young age.

Medical advances have made the likelihood of our children developing a medical risk before their 30s extremely low. The low chances of early death and the small death benefits simply might not be the extra cost to your family.

All of this information leads us to a question about the worth of life insurance for children.

Our View On Children’s Life Insurance

Are children’s life insurance plans a waste of money?

Ask yourself this question, would purchasing life insurance coverage on your child or children provide you with peace of mind? If you answered yes, then personally, that is all that matters.

While we will agree that if you are purely interested in purchasing a children’s life insurance policy to fund your child’s education, then it’s not going to be the best option.

We will also admit that if you’re on a budget, then we wouldn’t urge purchasing a child life insurance as a priority. Instead, as the parent, make sure that you have proper coverage should something happen to you.

Having adequate coverage will ensure that your child will be taken care of after your passing. Don’t forget, if you are applying for a new term insurance policy, don’t forget to check for companies that offer the child term rider. Adding coverage for your children under your own policy can be an affordable option.

As mentioned, if purchasing a child’s life insurance plan is going to bring you peace of mind, then no, it’s not a waste of money at all. Of course, in the rare, worst-case scenario, you’ll be glad you had it. Losing a child is hard enough when it doesn’t put a burden on your expenses. Thankfully, most children in the modern era live healthy lives well into adulthood.

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What’s the Best Way to Get a Children’s Life Insurance Quote?

If you’ve determined that you want to look into getting a life insurance rider or a quote for a whole life policy, you’ve got a couple of options. You can work with an independent insurance agent or agency, such as Top Quote Life Insurance.

With an independent agency, you can get quotes from multiple companies at the same time, to see what the market has to offer. Getting quotes is an especially good idea if your child has medical issues, to get the perfect plan for you and your child.

Plus, it’s always a good idea to check an insurance company’s ratings. For this, you can use rating companies such as AM Best Ratings, Moody’s, Fitch, or Standard & Poor’s.

How to Buy Life Insurance For Children

Due diligence is essential when purchasing any kind of insurance. If you’re curious about life insurance for your teenager, newborn, infant, or entire family, it’s best to shop around before making a decision.

Talking to an independent agency and getting some quick, free quotes can help you determine whether or not children’s life insurance is right for your situation. For most people, a child term rider is a good, affordable option— and can provide coverage for all of your children.

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