Do Your Kids Have Life Insurance?

When you first have your bundle of joy you may worry about car seats, diapers and clothes but do you stop to think about a life insurance policy for your child. Life insurance is a frequent purchase by people in their late twenties and beyond but many forget that coverage for children is also necessary. One reason it is a good idea to purchase a policy when your child is first born is the cost will be lower at that time.

family insurance

Types of Policies

There are several life insurance policy choices for infants and children and the choice will depend on your budget and long term goals. If you would like your child to use the policy later in life to cover the expenses of college, you will want to choose a policy that includes a college savings fund. You can also select a permanent policy that will build value throughout the years and allow you to borrow money from it later in life. The third type of policy available is a child rider. This is an addition to the parent’s policy that will cover the child under the age of 17 and can be converted to a separate policy once the child reaches the maximum age.


The younger your child is at the time of purchasing a policy, the lower your life insurance rates will be. A permanent policy will allow your child to pay a much lower premium for the duration of the policy. This means as long as they don’t cancel the policy they will be able to pay less than someone who purchases a policy in their twenties. A rider will cost less in the beginning but the premium will increase if the child decides to turn it into a separate policy later. Premiums for policies that include a college savings plan may charge lower premiums but the savings portion is separate.


Some parents will choose to purchase a life insurance policy for their child to prepare for the future or to be ready to the worst case scenario. Depending on your reason for purchasing the policy will determine which type of policy you should choose. If you are purchasing the policy strictly to prepare for the worst, you can choose either a permanent or rider policy. If you are purchasing a policy to plan for the future, you will want to look into the combined insurance and saving plan.

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