Policy Types

How to Buy Life Insurance for Your Child

If you have decided that you are interested in purchasing life insurance for your child - and there are lots of reasons that is a good idea - here are three different ways to get that coverage.

3 Ways to Buy Life Insurance for Children

Protecting their financial future, lower rates, cash value, and living benefits are just a few of the reasons for getting life insurance for children while they're young. And just as you have a choice in the type of life insurance for your child, there are also different ways in which you can buy it.

The following are three ways that you can get life insurance for your children:

Purchase a stand-alone policy

Most insurers can offer you a variety of different life insurance plans for children with very reasonable rates. Often you can buy a policy with a face amount as low as $10,000 for just a few dollars a month, depending on the child's sex, age, and policy term. Underwriting on a stand-alone policy for a child typically includes health questions and may not include bloodwork or urine samples.

An employee benefit offered by your employer

We all know the cost of raising children. Employers sometimes offer small life insurance policies for dependents of employees for little or no cost. However, the face amounts on these types of policy offerings are typically low (often between $5,000 and $10,000, depending on what your employer offers). Coverage with these lower limits may only be enough to cover final expenses and little else, but if it's offered at no cost to you as a benefit, it's worth it. However, keep in mind that if you were to leave your job, the insurance coverage will likely cease. Generally with this coverage, there is no underwriting in which to qualify and issue a policy.

Add a child life insurance rider

With a children's life insurance rider, you can provide coverage for every child in your family for the same price (if your policy offers this option). So if you have two or more children under the age of 18, this rider can be a cost effective way to purchase coverage for all of your children with one low premium. The downside is that child riders don't always offer a lot of coverage (most typically offer an average face value between $10,000 and $25,000 per child). However, they sometimes include the option to buy additional coverage over and above this amount at some point in the future.

The rider will expire when a child reaches adulthood (age determined by the insurance company) and when it does, you'll need to purchase an individual life insurance policy if you want to continue coverage. Underwriting generally includes a few broad health questions and bloodwork or urine samples are typically not required.*

Before deciding on a life insurance policy for your child, take the time to learn about the different kinds of policies and options that are available. A qualified insurance professional can help answer any questions you may have and select what's best for you and your child.

* Not all policy types or insurance carriers offer this optional rider and underwriting requirements to qualify for this coverage may vary.

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Life Insurance for Kids

There are several options when it comes to life insurance for kids. In addition to the different types of life insurance for kids available, there are a variety of ways in which you can purchase a child life insurance policy. This article presents a few options to consider when deciding if a child life insurance policy could meet your family's needs. For more information, visit our learning center.

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