Just the mention of child life insurance can make heads turn. Pondering our own passing is tough enough – who is preparing for the death of a child?

Since life insurance is designed to replace the income of the person who is getting the policy, it’s no surprise that life insurance for children is a not a very popular purchase.
If you’ve gotten a glossy brochure offering your new baby whole life insurance coverage, then you’ll notice it talks more about the advantages of using this as a financial planning vehicle than looking at it from a traditional death benefit perspective.

Paying premiums now could ensure they are covered once they get older, and accruing interest along the way can create a cash value that can be borrowed against for education expenses or whatever your family needs.

There are some benefits to purchasing life insurance for a child – after all, rates are lower the younger you are. If your family has a risky medical history, locking in coverage at a low rate now will protect them from being uninsurable in the future.

Many of the companies offering whole child life insurance plans tout guaranteed coverage with no medical exams and a fixed low premium that doubles at age 18.
Some people get these policies just as a way of teaching their children about financial responsibility since they take over the policy at 21. Opponents say you can establish good financial judgment by establishing a simple savings account for your child.

The main concern among those who frown on life insurance for children is that parents who aren’t fully protecting themselves with adequate insurance coverage (health, life, disability, long-term care) may be spending money on something they don’t really need.

However, if you are fully covered with all other necessary insurance products, you may consider purchasing a child life insurance policy to ensure them coverage in the future.