Why Should I Buy Life Insurance for My Child?

Child Life Insurance - Mother holding child in nursery

Not a moment goes by when parents aren’t worrying about their children. Is he the appropriate height and weight for his age? Does she get along with other kids? Will they ever eat their vegetables?

While we don’t have the answers to those questions, we do have answers to all of your life insurance questions. Check out the common concerns we hear from parents like you, and how a children’s whole life insurance policy can help ease your mind. 

Ensure approval for adult life insurance coverage

Adults with health issues can often be denied life insurance coverage. Even healthy adults might be ineligible for some policies if their jobs are considered dangerous. That’s why it’s a good idea to purchase a whole life insurance policy when your child is young and healthy.

If your child develops a medical condition or poor health later, he or she won’t lose the coverage obtained as a kid. If your child is already insured, he or she won't have to go through a medical exam or answer a long health questionnaire to qualify for insurance. Children's life insurance is a great way to ensure a lifetime of financial security for your child, and if your child has a family of their own, the life insurance you buy today can benefit future generations.

Plus, as an adult your child is guaranteed the option to buy additional coverage at our standard adult rates and acceptance is guaranteed regardless of health or occupation. The child life insurance you get today will ensure coverage that lasts into adulthood.

Keep future premiums as affordable as possible

A life insurance premium is the amount of money you pay each month for your insurance policy. Premiums are based on your child’s age and health when you apply — that means your child's life insurance premium will never be as low as it is today. And even if he or she is eligible for life insurance as an adult, a health condition can make premiums expensive.

With a children's whole life insurance policy like the Grow-Up® Plan, the childhood rate is locked in and never goes up.

So what better time to buy whole life insurance than when your child is young and healthy? Lock in the childhood rate now, and your child can keep the policy as an adult with the same monthly payment for life.

Help your child build a future financial base

Here’s an important benefit of whole life insurance that every parent should know: This kind of policy builds “cash value” over time. This is money that’s set aside with each monthly premium payment you make. The longer you own the policy, the more cash value the policy accumulates. It’s like a small nest egg for the future.

After your child turns 21 and becomes the policy owner, he or she can continue to pay the premiums and keep the policy. They will have life insurance coverage and can borrow from the cash value that has grown over the years if needed. Or, they can surrender the policy and receive the accumulated cash value to help get them started in life.

The cash value in a whole life insurance policy is a benefit you won't find with other types of children's life insurance. For example, some companies offer the option of buying a child rider with a parent's term life insurance policy, but the benefits expire at the end of the policy term. Children's whole life insurance provides more lasting benefits. And if you should run into financial difficulties while your child is growing up, it’s good to know that you can borrow against the policy’s cash value as well, as long as premiums are paid. The option to borrow against your cash value is always there for you — and your child*, after they turn 21 — in case of an emergency.

Life is uncertain: Life insurance helps you prepare for the unexpected.

Life is unpredictable. Children’s whole life insurance provides greater peace of mind, knowing that you’ll have financial protection should the unthinkable occur. You might not depend on your child for income, but you will want to be prepared for final expenses and medical bills. You might want to take off time from work to take care of your family. Life insurance can help you focus on your loved ones, and give you one less thing to worry about during a difficult time.

Now you have 4 good reasons to buy life insurance for your child: to ensure your child will always be insured, lock in the childhood rate for life, build cash value your child can borrow from, and help protect your family for the unexpected.

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. Learn more about the benefits of child life insurance or find a policy that’s right for you by calling us at 1-800-704-3331.

*Policy loan interest rate is 8%. Loans may impact cash value and death benefits.

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