Best Life Insurance for Children in 2024

Best Life Insurance for Children

Purchasing life insurance for a child is a significant decision for parents, grandparents, and guardians. It offers a financial safety net in case of the unthinkable, ensures future insurability, and can be an investment tool for the child’s future.

We’ve reviewed numerous insurance providers to determine the best options across various categories.

Best Life Insurance Options:

Best for high coverage limits: American Family

Best for babies: Gerber Life Grow Up® Plan

Best for whole life coverage: Foresters Financial

Best for children’s term rider: State Farm

Best for term life insurance: Aflac

Best for standalone policy: Mutual of Omaha

Best for High Coverage Limits: American Family

American Family offers substantial coverage amounts for children’s whole life insurance, with policies that can be paid in 10 or 20 years.

• Pros: High coverage limits starting at $25,000. Online quotes are available.
• Cons: Not available in all states.

American Family’s DreamSecure Children’s Whole Life plan offers limits of $25,000, $50,000 or $75,000, higher than many competitors, with rates that are locked in.

Best for Babies: Gerber Life Grow Up® Plan

The Gerber Life Grow Up® Plan is excellent for families with new babies, offering affordable rates for children between 14 days and 14 years old.

• Pros: Coverage doubles at age 18. Guarantees insurability in adulthood, and is available to parents, guardians, and grandparents.
• Cons: Few rider options, not available for children ages 14 and older.

For kids under 1, premiums start at $3.70 a month with $5,000 worth of coverage.

Best for Whole Life Coverage: Foresters Financial

Foresters Financial provides a no-exam whole life policy payable for 10 years or to age 100. Foresters offers several riders at no additional charge, including accelerated death benefits for terminal illnesses.

• Pros: Premiums can be paid over 10 years or up to age 100.
• Cons: Quotes aren’t available online, and this option is not available in all states.

Best for Children’s Term Rider: State Farm

A children’s term rider is more affordable than a standalone policy. State Farm’s rider covers kids as young as 15 days old with benefits up to $20,000.

• Pros: Reasonable rates, top-rated customer service, and term policies can convert into permanent coverage.
• Cons: Policies must be purchased through a State Farm agent, and there are fewer riders than the competition.

Best Term Life Insurance: Aflac

Aflac stands out as one of the few companies offering term life insurance for children. Coverage ensures future insurability by allowing conversion to a permanent life insurance policy with up to double the coverage.

• Pros: Ensures future insurability.
• Cons: Coverage is limited to $30,000 for children’s life insurance.

Best for Standalone Policy: Mutual of Omaha

For those seeking a separate policy for their child or grandchild, Mutual of Omaha’s Children’s Whole Life Insurance offers coverage up to $50,000, with no medical exam and only a few health questions.

• Standout Benefits: Mutual of Omaha allows the child to purchase more coverage at specific birthdays and life events.

Types of Policies

There are two main ways to secure life insurance for a child:

1. Standalone Life Insurance Policy: A whole life policy stays in force as long as premiums are paid and has a cash value component.
2. Child Rider: Parents can add their children to their policy affordably with a term life rider.

Key Considerations When Buying Life Insurance for a Child

• Coverage: Determine whether a whole life, term life, or a rider on an existing policy aligns with your needs.
• Age Limits: Consider minimum and maximum issue ages for eligibility.
• Coverage Limits: Evaluate how much coverage best suits your family’s needs.

Frequently Asked Questions

• Can you get life insurance for a child? Yes, parents, legal guardians, and grandparents can buy life insurance for a child. These plans are typically small whole life policies that pay out less than $50,000, but can be converted into adult policies after 21.
• What type of life insurance is best for a child? A whole life insurance policy offers fixed premiums, lifelong coverage, and the opportunity to build cash value or add coverage at milestones. You can add your child to your policy with a rider or buy them a term life policy.
• Can I buy life insurance for a child at any age? Most companies offer coverage from birth or 14 days old up to age 17.
• Is whole life insurance a good investment for a child? Whole life insurance does not build cash value quickly, making it a weaker investment than 529 plans or savings accounts.
• Can I borrow against my children’s life insurance policy? Some policies allow you to borrow against the cash value, or surrendering the policy to receive the cash value.