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Do Kids Need Life Insurance?

Child walking with parents

As a parent, you may wonder why your children would need life insurance. After all, you might reason, they’re young and healthy. While that may be true, life insurance – like other types of insurance – is something that should be in place before you need it.

Among the benefits of buying whole life insurance for a child, specifically the Gerber Life Grow-Up® Plan1 are:

  • The policyholder locks-in a child-size premium rate that won’t increase during the life of the policy.
  • During the year that the child is age 18, the policy coverage amount doubles automatically, but the child-size premium rate stays the same.
  • As the child grows up and reaches age 21, he or she becomes the policyholder, at the same child-size premium rate – a rate lower than if trying to purchase whole life insurance as an adult.
  • Your adult child is guaranteed the insurance coverage, no matter his or her health, occupation or hobbies at the time – reasons that might be cause for other insurance companies to deny coverage.
  • The policy accumulates cash value over time, so the adult child, as policyholder, can choose to cash in the policy for its cash value available or to keep the policy and its growing cash value for even a lifetime, as long as premiums continue to be paid. The longer the policy has been in effect, the larger the cash value will be.

For many families, the value of purchasing a whole life insurance policy for a child goes far beyond the monetary value. In addition to offering peace of mind for the parents, it can offer a “head start” to children early on in life.

1 Policy Form ICC12‐GPP; Policy Form Series GPP-12

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