What You Should Know About Life Insurance for Children
As a parent, you probably spend a lot of time thinking about your children’s future. You plan for school, save for activities, and try to protect them in every way you can. But one thing you might not have thought about is life insurance for children, which can help protect their financial future.
Parents may not know that this type of life insurance is available and that it could have long‑term benefits for kids as they grow up.
The idea can feel unusual at first. After all, most people think life insurance is only for adults. But children can get coverage too — and in some families, it becomes an important part of their financial planning.
Read on as we walk through the most common questions about life insurance for children, including:
- Can children get life insurance coverage?
- Why do some parents choose it?
- How does it work?
- What should you consider before buying?
Can You Purchase Life Insurance for Children?
Yes, children can get life insurance coverage — and it’s more common than you might think. One popular option is through a whole life policy designed for minors.
Parents, grandparents, and legal guardians can buy this coverage. The adult becomes the policy owner, and the child is the insured person. The policy stays in place for life unless the owner chooses to end it.
Life insurance for children usually offers smaller coverage amounts, like $10,000, $25,000, or $50,000. These amounts stay the same unless they are increased later. Typically, premiums are low because of the child’s young age and good health. With a whole life policy, the premium typically doesn’t increase.
For example, a parent might buy a small policy for their newborn and lock in a very low rate that stays the same even when the child becomes an adult.
Why Choose Life Insurance for Children?
Families choose whole life insurance for children for several practical reasons, including:
1. Locked‑in low premiums. Buying coverage early means:
- The rate is based on the child’s young age.
- The premium typically never increases.
- The policy is very affordable over the long term.
2. Guaranteed insurability. This simple benefit means:
- A permanent policy can stay with the child as they become an adult.
- Coverage can often be increased later if an optional guaranteed insurability rider is purchased.
- With the guaranteed insurability rider, coverage can remain available even if their health changes later in life.
3. Financial protection. While no parent wants to think about losing a child, life insurance can help with unexpected costs. It can also afford the family time away from work to grieve.
4. Cash value growth. Whole life policies may be able to build cash value. This amount can grow over time and may be accessed later1 for things like:
- A small emergency
- Education costs
5. A long‑term gift. Many parents and grandparents like the idea of giving a gift that lasts a lifetime — something the child can keep, manage, or even potentially increase later.
How Life Insurance for Children Works
Here’s a simple breakdown of how children’s life insurance works:
- Ownership. Typically, the adult who purchased the insurance owns the policy until the child becomes an adult — usually ages 18 to 21. Then the adult owner can choose to transfer ownership, and the now‑adult child can keep paying the same low premium.
- Premiums. Life insurance policies for children typically have low monthly costs, premiums that never change, and predictable payments, even decades from now.
- Cash value. Think of cash value as a small savings bucket inside the policy. It can grow every year and may even allow borrowing1. (It should never be thought of as a replacement for regular savings or emergency funds.)
- Coverage amount. Policies for children usually start with small amounts, but with a guaranteed insurability rider, can allow increases later, even if the child develops health issues.
Life Insurance for Children vs. Adults
Here’s an easy breakdown of how child and adult policies differ:
- Purpose. Life insurance for children is usually about securing insurability earlier in life and potential long-term growth. For adults, it’s usually about income replacement, coverage for major debts, and broader financial future protection.
- Cost. Children’s premiums are typically much lower because they’re young and have fewer health risks.
- Coverage amounts. Adults often purchase $100,000 to $500,000 or more. Children typically have much smaller policies.
- Underwriting. Children usually only need a simple health questionnaire and may not require medical exams. Adults sometimes face more detailed health checks.
- Cash value. Because coverage starts early, life insurance that builds cash value has many more years to grow.
Things to Consider Before Purchasing
Before you decide whether or not to purchase life insurance for your children, there are some practical points to think about:
- Your budget. Even low monthly premiums add another bill. This can matter for families on tight budgets.
- Your financial priorities. Do you have emergency savings? Do the adults in your home have coverage first? Parent coverage often comes before child coverage.
- Long‑term commitment. Whole life insurance works best when kept long term.
- Cash value expectations. Cash value grows slowly. It’s steady, but not fast.
- Family health history. If you have health risks in the family, early coverage may be more valuable.
What’s Right for Your Family?
Life insurance for children may offer several long-term benefits, including locked-in rates, guaranteed coverage, and steady cash value growth. But every family’s situation is different. What matters most is choosing what supports your child’s future in the best way for your budget and your goals.
As you plan for the future you want for your kids, a WoodmenLife Representative can help you explore your options. They’re committed to finding the best solutions for your unique needs.
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.
Certain charges will not reduce when decreasing the face amount of insurance or after taking withdrawals from the policy.
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.
Not all Representatives are licensed to sell all products. All products not available in all states.
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