Life Insurance for Teens: What Families Should Know

Maybe your teenager just got their driver’s license, started their first job, or began talking about college. Big milestones like these get you thinking about the future — including whether life insurance for teens makes sense.

At first, life insurance for teens may feel unnecessary. After all, teens are young and healthy — why think about life insurance now? For many, it isn’t fear of the future — it’s about planning and flexibility.

Can Teens Get Life Insurance?

Short answer: Yes.

In most cases, a parent or legal guardian purchases the policy for them. The parent or legal guardian, then, can either:

• Own the policy.
• Or set themselves as the controller of the policy with the teen as the owner. This means the parent or legal guardian reserves owner rights to the policy until the teen is legally an adult. Then, ownership automatically transfers to the teen.

A common choice for teens is whole life insurance — also called permanent coverage — meaning the policy can last a lifetime as long as premiums are paid. Another option for teens is term life insurance, which provides coverage for a specific amount of time.

Read More: What You Should Know About Life Insurance for Children

Why Some Families Choose Life Insurance for Teens

Here are a few of the most common reasons families choose life insurance coverage for their teens:

• Locking in lower rates early — Life insurance premiums are typically lower when someone is young and healthy. Starting early can mean predictable, lower payments over time.
• Cash value growth — Whole life insurance can include a cash value component that can increase in value over time and could be accessed¹ later under certain conditions.
• A meaningful financial gift — Some parents or grandparents see life insurance coverage as a long-term gift, something that supports a child’s future.

Here’s an example: A parent purchases a small whole life policy for their 15-year-old. Years later, that policy is still in place and the now-adult child has options to keep or build on it.

Note: The child only has this option if the policy was set up with the parent as the controller and not the owner.

If you’re thinking about coverage overall, you can also calculate your life insurance needs to understand where teen coverage may fit.

Read More: Calculate Your Life Insurance Needs Without the Confusion

How Life Insurance for Teens Works

The basics of teen life insurance are fairly simple:

• Ownership: A parent or guardian owns the policy while the teen is a minor, or the policy can be set up with the parent or guardian as the controller and the teen as the owner.
• Premiums: Payments are generally small, fixed, and predictable.
• Coverage: With whole life insurance, the policy can last for life as long as premiums are paid.
• Transfer of ownership: When the teen becomes an adult, ownership can often be transferred to them.

Life Insurance for Teens vs. Adults: Key Differences

Life insurance looks different for teens than it does for adults. Here’s how:

Purpose:

• Teens: planning for the future.
• Adults: income replacement and financial protection.

Cost:

• Teen policies are often more affordable because younger people tend to be healthier.

Underwriting:

• Teens typically have fewer health concerns, which can make approval simpler.

Cash value timeline:

• Purchasing a policy earlier in life means more time for potential cash value growth that could be accessed¹ later under certain conditions.

What to Consider

Before deciding whether to purchase life insurance for your teen, take a step back and look at the full picture. Here’s a simple checklist:

• Your budget — Make sure a life insurance policy for your teen fits comfortably within your financial plan.
• Cover yourself first — A parent’s life insurance needs should typically come before a child’s.
• Long-term commitment — Purchasing a policy for a teen can lock in a lower premium, and whole life insurance provides coverage for a lifetime.
• Cash value¹ expectations — Growth is usually slow and steady.
• Health history — Early coverage can be helpful should health concerns arise in the future.
• Not a requirement — Remember, purchasing life insurance for teens isn’t a must. It’s just one way to plan ahead.

Quick Q&A

Should teens really have life insurance?

It depends. Life insurance for teens is optional and depends on your family’s goals. Some families value early planning and guaranteed coverage, while others focus on savings or education funds instead.

What type of life insurance is best for teens?

Whole life insurance is often used for teens because it can last a lifetime and may build cash value over time. Term life insurance — which provides coverage for a set amount of time — is also an option.

Can teens keep their policy as adults?

In many cases, yes. Policies purchased during the teen years can transfer ownership to the individual when they reach adulthood, allowing them to continue or adjust coverage.

Is life insurance for teens expensive?

It’s often more affordable than adult policies because of the teen’s age and health. Premiums are typically fixed, which can make long-term planning easier.

The Decision is Yours

Life insurance for teens isn’t about urgency — it’s about options. For some families, it’s a way to plan ahead, lock in flexibility, and create a foundation for the future. For others, there may be better alternatives.

The right decision depends on your goals, your budget, and what matters most to your family.

If you want to explore your options, a WoodmenLife Representative can help you get started and talk through what makes sense for you.

Written by: Gary Peterson, Senior Copywriter

1. Loans and withdrawals will reduce the policy’s death benefit and available cash value. Loans against the cash value will accrue interest. Excessive loans or withdrawals may cause the policy to lapse. A loan, withdrawal or surrender may be a taxable event. For advice, consult with your professional tax advisor.
This blog is intended for general educational purposes only and may reference products, features, or options not currently offered by WoodmenLife. Availability of products and features can vary by company and state.
WoodmenLife, its employees, and Representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

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Life Insurance for Grandchildren

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