Babies and Families

Life Insurance Policies as a Present: Giving the Gift of a Life Insurance Policy to a New Baby or Grandchild

Here's a lasting gift to consider for your child or grandchild's next birthday or holiday: Life Insurance. While it's not a shiny new toy, it could be a valuable financial asset for their future.

You won't find a life insurance policy at the top of a child's wish list. However, unlike another toy or latest fashion trend, life insurance won't be something they'll outgrow. And while there are many who may feel that gifting a life insurance policy to a baby or grandchild is inappropriate or even unnecessary, it can in fact make good economic sense and be a loving way to invest in their future.

Why the gift of a life insurance policy?

Buying life insurance for a healthy baby or grandchild can be very affordable. And with a permanent* policy, the cash value that grows over time can provide funds that can be borrowed against or withdrawn as the child grows into an adult. It's money that can be used to help prepare for the future such as paying for college or even a down payment on a first home. Moreover, as the child matures, he or she may have the option of buying additional life insurance in the future, providing protection for their own family.

Understanding the life insurance requirements

Life insurance companies won't allow you to take out a child life insurance policy on just anyone you want. As a general rule, you can only take out life insurance on someone that you have an insurable interest in such as a relative, domestic partner, or business associate.

To take out a life policy on a minor, you'll be required to provide their name, date of birth, address, Social Security Number, and information on how you're related. And although a medical exam might not be required initially, you'll typically need to provide some basic health information on the child.**

If you are a grandparent

Since grandparents are generally considered extended caregivers, many states will allow you to buy life insurance for your grandchild without the parent's consent or knowledge. You can name yourself, the child's parents, or even another family member (such as a sibling) as a beneficiary. However, rules may vary by carrier.

If you're considering the gift of a life insurance policy, talk to a qualified insurance professional who can help you select the policy that can give your baby or grandchild a healthy financial start.

*Provided required premium payments are timely made.

**Underwriting requirements will differ between life insurance companies*

Reference: Juvenile Life Insurance Foundation

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Best Life Insurance

We commonly seek for the best gift to give our children and grandchildren, but what if the best gift is simply the best life insurance policy? Children may not open the present of a child life insurance policy and think it's the best, but this article shares a few practical reasons why giving the gift of child life insurance may be the best life insurance for them. For more information, visit our learning center.


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.

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