Do Children Need Life Insurance?

Child walking with parents

Millions of parents and grandparents have whole life insurance for their child or grandchild.  So, you may be wondering, should you perhaps have life insurance for your child, too? What exactly is children’s life insurance, and how does it differ from adult life insurance?

Here are some insights, to better understand the reasons and benefits of buying whole life insurance for a child.

Will your child grow into a healthy adult?

Children’s whole life insurance assures guaranteed insurability as an adult, regardless of health or medical conditions.

We all hope our child will grow up to be healthy, but if your child faces health issues later in life, it may be difficult to obtain a life insurance policy. By buying a whole life insurance policy for your child now, you guarantee that your son or daughter will have coverage that he or she can choose to keep as an adult — regardless of health changes.  A whole life insurance policy can provide protection for their entire life. That’s a key reason why people buy life insurance for children, Marvin Feldman, CEO of Life Happens, said on

Will your child pursue high-risk work or hobbies as an adult?

Children’s whole life insurance assures guaranteed insurability as an adult, regardless of occupation, hobbies or military status.

Children dream of growing up to be anything they want, and we want them to become successful without limitations. However, that doesn’t necessarily mean that they’ll qualify for life insurance later on. If your child were to pursue a high-risk hobby or occupation as an adult, such as a firefighter, police officer, sky diver, astronaut or soldier, his or her ability to obtain life insurance as an adult could be limited. That wouldn’t be a potential issue if your son or daughter already has whole life insurance.

Will your adult child be able to afford life insurance?

Children’s whole life insurance assures premium rates that lock-in for life, so your child gets to keep the same rate as when you bought the policy.

Premiums are based on your child’s age and health when you apply for the policy. What better time to buy whole life insurance for your child than when he or she is young and healthy? Your child can pay the same affordable rate as an adult and keep the policy, as long as premiums continue to be paid.

Does children’s life insurance have cash value?

Children’s whole life insurance assures cash value that grows, just like your child, into adulthood.

Whole life insurance policies build “cash value” over time – money that’s set aside with each monthly premium payment made. The longer that you – and later your adult child upon turning age 21 – own the policy, the more cash value that the policy accumulates. It’s like a small nest egg for the future. As an adult, your child will have the option to turn in the policy and receive the available cash value, which can be used for anything. Should there be need for ready cash, whole life insurance also permits the policy owner to apply for a loan against the policy’s available cash value, as long as all premiums are paid.

What happens when your child reaches age 21? Does the policy end?

Children’s whole life insurance assures that the policy you bought will carry forward to your child or grandchild.

Upon reaching age 21, ownership of the children’s life insurance policy automatically transfers from you to your child – along with the accumulated cash value. The longer that you and then your child own the policy, the more cash value it accumulates.

What happens if the unspeakable should happen?

Children’s whole life insurance assures financial support, for greater peace of mind.

Life is unpredictable. Children’s whole life insurance provides greater peace of mind, knowing that you’ll have financial protection should the unthinkable occur.

The Gerber Life Grow-Up® Plan is a children’s whole life insurance policy that can be a valuable safeguard for you and your child in the above ways and other ways, too. To learn more, please click here

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