Should You Buy Life Insurance for Your Children?

If you have children, you may be wondering if you should buy life insurance for them. The answer to this question, like so many, is “it depends.” Let’s look at the pros and cons of having a life insurance policy for a child.

Why You Should Buy Life Insurance for Children?

The two main reasons to buy a life insurance policy for a child:

1. To cover expenses should the child die.

A policy could help fund related medical bills and funeral costs.

2. To guarantee the child’s insurability as an adult.

If the child develops a health condition, he or she would probably be declined for individual life insurance as an adult. A policy bought for a child lets them purchase a policy as an adult without having to have evidence of insurability.

When You May Not Need to Buy Life Insurance for Children?

If you have the financial means to cover major costs when they arise, you probably don’t need to buy a life insurance policy for your child. Parents who are affluent are better off investing money in a college savings plan such as a 529.

Types of Life Insurance Recommended for Children

Whole Life Insurance

Whole life insurance can stay in effect for the insured’s entire life. Things to keep in mind include:

  • This is the more expensive option. For instance, a $50,000 policy might cost about $30 a month, or $360 a year.
  • Premium periods are for life, pay to age 65, pay for 20 years or pay for 10 years.
  • Whole life has cash value, which will grow.
  • You can opt for a policy that allows the child a future purchase as an adult with no evidence of insurability.

Term Life Insurance

Term life is purchased to cover a specified number of years.

  • Term life for children generally lasts up to age 25 or 30 years of age.
  • Most term policies for children offer the option of converting to whole life with no evidence of insurability.
  • Term life is affordable, sometimes as little as $25 a year, depending on the insurer.

Shop Around

Before buying life insurance for a child shop around and compare policies from different insurers. EINSURANCE provides a quick and easy way to get quotes online so you can compare your options.


EINSURANCE is a one stop shop for insurance quotes comparison. Our writers, researchers, and industry experts all work together to inform consumers about online insurance marketplace. Whether you’re buying your first car insurance policy or finding health insurance for your families, EINSURANCE always provides latest relevant information to your choices.