Do I Really Need Life Insurance on My Child?

Cathie Ericson
Nov 14, 2017

You’re protecting your child’s ability to get more life insurance in the future and building cash value. Photo credit: Getty Images

Life insurance is one of those things most people don’t think about until they have a family. It’s there to protect your family financially in case something were ever to happen to you.

But buying life insurance for a child? The very thought of it is uncomfortable. However, there are a few reasons why life insurance might make good financial sense for your children.

Buying life insurance for a child is about more than insuring your child’s life right now.

YOU LOCK IN THEIR ABILITY TO GET MORE INSURANCE

People with a history of health issues like cancer or diabetes often struggle to get personal life insurance. If they can, it’s usually very expensive.

But once you buy insurance, your rates won’t change if you develop a health condition. Typically, you’re never as healthy as when you’re young. Buying life insurance now — while your child is healthy — means he or she will already have insurance, and prices won’t go up based on health. And some companies offer an additional benefit where your child can purchase even more insurance based on their current health in the future.
RATES WILL NEVER BE CHEAPER

The cost of life insurance is based on your age and health.

Buying a policy when your child is young and healthy can guarantee that he or she will continue to qualify for the lowest rates throughout their lifetime. That’s because with many policies, your child will have the option to add more insurance in the future if they want to. In that case, the cost of the new insurance will be higher based on your child’s age, but any changes in health won’t affect them.
YOU BUILD CASH VALUE

One side benefit of getting a whole life insurance policy for a child is that it will build cash value over your child’s entire lifetime. Over time, the cash value could grow to be substantially more than you paid in, and it is guaranteed to never go down in value. That’s money your child could use someday to help pay for things like college tuition, a down payment on a home or a wedding without the worry of how the market performed the day before.