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Should I Get Life Insurance on My Child?

By June 18, 2021

After months of preparation and hours of labor, you’re finally ready to bring your newborn home. You’ve purchased the top-of-the-line car seat, read up on the latest trends in safe sleeping and all the bottles have been washed and sterilized. But you might be forgetting one thing that you didn’t know you needed: life insurance for your tiny tot. Is it a necessity? Read on to find out.

Does My Child Need Life Insurance?

Needing to take out a life insurance policy on your child in the event of their death can be something no parent wants to think about or explore — but that’s not exactly what a policy would be needed for.

Typically, a life insurance policy on a child is meant to guarantee they will have life insurance for their entire life, regardless of their health. Those with health issues might have trouble qualifying for coverage later.  Life insurance policies meant for babies are usually smaller than adult policies, but there are often riders that go along with the policy to allow additional coverage to be purchased throughout your child’s life.

An additional benefit to a life insurance policy for a child is the ability of the policy to have a growing surrender value, which allows loans to be taken against this value during the child’s lifetime. Your child could use this money to fund an education, put a down payment on a house or vehicle or could simply provide an emergency source of funds for the child if needed.

Of course, a common reason to buy life insurance on your newborn would be for the unthinkable — in which case, parents can cushion the burden of funeral expenses, allowing them the financial stability to raise other children.

What Kind Of Life Insurance Should I Buy For My Child?

A whole life insurance policy is the only kind of coverage you can purchase for your child, as a term life insurance policy would expire at too young of an age and wouldn’t pay a benefit when it is in force.

Whole life coverage for a child is extremely inexpensive, making it an added benefit for parents who are struggling to decide whether to purchase a policy or not.

When is the right time to get life insurance for yourself? >>

How Do I Buy Life Insurance For My Child?

Just like purchasing a life insurance policy for an adult, coverage for a child can be done through an agent.

At Block Insurance, we understand coverage needs and comfort levels are different for everyone, which is why we take the time to evaluate your situation and listen to your needs and concerns. Let our team get your free quote started today.