Here are some factors to help you decide. The number one reason for taking out life insurance is to compensate for the loss of income a death in the family would entail. But if they were to die, you would surely need to take some time to grieve and come to terms with the shock. This can be a huge advantage for your children, especially if their health declines. For instance, a child diagnosed with a critical illness that would rule out the chances of getting insurance in adulthood could fall back on the life insurance you had the foresight to pay up when he or she was young.
Read our full Mutual of Omaha review. As anyone who has had a baby within the past 50 years can attest, Gerber is one of the most trusted names in life insurance for children. Their product offers many competitive features that make it stand out versus its competition, including coverage benefits that double when your child turns 18 at no extra cost.
Only rated A from AM Best, a strong rating, but weaker than some others that we feature in this article. Gerber is the only company that does this. It offers the "Grow-Up" policy for children under 18 years old, and the "Gerber Life Young Adult" policy is for children aged 15 to They make it easy to complete an application online and initiate a policy for either option, both of which will guarantee your loved one's insurability, all while building cash value.
When the insured individual reaches 21 years of age, they can either take the policy's cash value or continue payments and coverage. And there are several times as an adult that the insured policyholder can add value to their plan. Read our full Gerber Life Insurance review. This is one of the most affordable options available. Most whole life policies cost five to fifteen times what an equivalent term policy costs. The State Farm Family Life Insurance plan is great for the family who wants only death benefit coverage for their children and chooses to fund other life events like college, marriage, or housing purchase through other savings vehicles that offer greater returns on the investment, such as a plan or an IRA.
Founded in , State Farm is a top-ranked insurance company. It is effective until each child reaches the age of 25 and can be converted to either an ongoing term or whole life option without the need to prove insurability. As a rider , this means that parents need to have their own policy. Customers can't buy the children's term policy rider as a standalone insurance policy. Read our full State Farm Life Insurance review. As a membership-based insurer, some of the profits are shared with members in the form of various benefits, such as financial and legal counseling and community outreach programs members can sponsor and lead.
Foresters Financial offers the most innovative and versatile life insurance for children of any we looked at with flexible transfers of ownership. In business since , Foresters Financial started with a mission to provide affordable insurance to working families and has continued with that mission through to today.
We particularly like some of the riders who allow payouts before death to help with the end of life expenses for certain eligible terminal illnesses, as well as extra coverage for death while on public transport or for accidents. All new Foresters Financial policies must be written through a representative—no online application or immediate quotes are available. Read the full Foresters Financial review. Thrivent started in business in , offering insurance for only Lutherans.
Only in did Thrivent open its policies to all Christians. Thrivent offers many standard life insurance benefits, including a fixed payment and a guaranteed cash benefit option that can be borrowed against as the insured ages. But its non-profit status offers many additional programs, including numerous financial planning tools and community outreach programs.
Thrivent is unavailable to a significant portion of the U. With an A rating from AM Best, they are also among the strongest providers financially. For parents and grandparents who thought they waited too long to decide to get life insurance coverage for their children and grandchildren and found that no one would write a policy for a child older than 17, Globe Life Insurance is the best option for their affordable older children's policies.
In business since , Globe Life Insurance has built a strong reputation for good insurance products and great financial strength. Globe makes purchasing life insurance incredibly easy with their online user-friendly site that provides instantaneous quotes and easy completion of an application.
Read our full Globe Life Insurance review. All of the providers of life insurance for children are reputable companies with strong overall financial ratings. Some companies offer high policy limits, some offer multiple types of policies, and others offer no waiting periods, and money back guarantees.
We recommend checking out Mutual of Omaha. The company offers some of the lowest priced policies in the industry and has an easy application process. Life insurance , in the form of a policy issued by an insurance company, promises to pay a specified amount to a designated beneficiary upon the death of the insured. This policy is paid for usually monthly or annually based on a predetermined rate, or schedule, and is called an insurance premium.
There are generally two kinds of life insurance: term and whole life. Losing a child can be extremely painful, and you may incur unexpected costs.
Child life insurance policies pay out a lump sum in the event of a death, as long as the premiums are paid. Pros: The payout can be used for expenses like burial costs or grief counseling. Therefore, the risk of going without coverage may not outweigh the cost of the policy.
Assess your budget, review existing investments, and look at your own coverage needs before buying life insurance for your child. You may want to consider adding a child term life rider to your own policy instead of buying separate coverage for your kids. In some cases, you can convert child riders to permanent coverage when the term is complete.
Not all insurers offer these riders, and coverage amounts may be limited. You may also find more cost-effective coverage through workplace plans, says Martens.
What is child life insurance? The pros and cons of life insurance for children. Guarantees future insurability. Acts as an investment vehicle for your child.
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