Can I Buy Life Insurance for My Child? Your Questions Answered

March 25, 2024

Planning for the future involves many aspects of your life and finances. While getting a life insurance policy for yourself can safeguard the financial security of your family after your death, it's also worth considering whether to purchase this type of policy for your child.

While no parent wants to consider the prospect of covering funeral expenses for a child, there's more to consider. Child life insurance not only provides a safety net in case the child passes away, but it also offers other benefits, including financial planning and future insurability for your child. Read on to learn more about how child life insurance can benefit your family.

Common Questions About Child Life Insurance

What’s the Role of Child Life Insurance?

Child life insurance provides monetary protection in the event of an unexpected tragedy. It covers funeral costs and offers financial support during difficult times, for example: medical bills, counseling needs, and lost time at work.

Aren't They Too Young?

One of the most common questions people have about purchasing life insurance for their children is whether they are too young. The answer is no. Despite their young age, unforeseen tragedies can happen, making it important to consider life insurance coverage.

Coverage is a proactive measure ensuring financial protection and stability, regardless of age. Typically, you can buy a policy for a child who is age 18 or younger.

How Does Coverage Work?

There are two primary types of life insurance for children. Term life insurance policies last for a specific timeframe. Whole life policies provide lifelong coverage and accumulate cash value, offering a financial cushion for future needs like college funding.

Each type of policy has its own premiums and benefits. Purchasing and managing a child life insurance policy involves several steps:

Choose the policy type
Select coverage amount
Apply for the policy
Pay the premiums
Manage the cash value (with whole life policies)

You can transfer ownership to your child at a certain age. This process allows your child to continue coverage, add more coverage, or update the beneficiaries.

What Are the Benefits of Child Life Insurance?

In addition to the potential cash value component with certain policies, child life insurance offers crucial benefits for families:

Pays for funeral expenses
Covers loss of income
Locks in lower premiums
Guarantees insurability regardless of future health conditions

Child life insurance allows parents to focus on their child's well-being without worrying about unforeseen financial strains.

When Is the Right Time To Buy?

The right time to buy a life insurance policy depends on various factors, such as the child's age, health, and family circumstances.

Purchasing when your child is young can have significant advantages, like lower premium amounts and more time for the cash value to grow in whole life insurance. However, you must consider aspects like budget constraints and long-term financial goals. Research your options with an insurance agent and discuss them with a financial advisor to make a decision that fits your needs.

About 1891 Financial Life

At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.