Child Life Insurance Plans 2023

Child Life Insurance is thought of as an accessory by the general public and it might be, for some people. It is arguable, child life insurance has some long lasting benefits to offer. The fact that your child has life insurance at an early life stage and has fixed and affordable premiums is one important benefit.

Secondly, if you insure your child from 14 days after his birth, he is eligible for buying life insurance when he becomes an adult, by default. Insuring a minor does not require the child to ever participate in the application process.

It does not require his consent or even knowledge that he is insured by any reputable firm. Most of the time parents, grandparents or great grandparents insure the children. It is an endearing expression and it goes to the advantage of the child.

1. How does a Child Life insurance plan work?
2. Which are the Top Child Life Insurance Agencies of 2023?
3. How much does child life insurance usually cost?
4. What are the Benefits of the child life insurance plans?
5. What are the Setbacks of buying a Child whole life insurance plans?
6. Who is eligible to buy child life insurance?
7. Is Gerber Life’s “Grow Up Plan” suitable for your child?
8. Do you have to take your child for the life insurance application process?

How does a Child Life insurance plan work?

A child life insurance policy can be temporary or permanent. If it is a temporary policy, it is a rider or an add-on to the father’s personal primary Term Life insurance policy. It is a part and parcel of the father’s policy and not a separate policy for children.

Also Read: Life Insurance for Autistic Child

The permanent types are whole life and universal life. More often than not, the parents choose a whole life child insurance policy in the US.

1. Often the whole life child insurance policy has the coverage of $50,000.
2. It covers the child from 0-26 years’ age.
3. The premiums are fixed for life.
4. Due to young age, premiums are very cheap.

If God forbid, the child passes away, his immediate funeral costs can be easily covered with his whole life child insurance. According to a recent study of NFDA National Funeral Directors Association, the average cost of an American funeral is $10,000. Similarly, according to recent studies, an American saving’s account holds $3,000 only. Better to be prepared for anything that life might offer!  

Which are the Top Child Life Insurance Agencies of 2023?

The rating is based on the financial history, least number of complaints, paying out death benefits, cost of insurance, and available riders. The top 6 firms are “A.M. Best Rating: A Excellent”. The best child life insurance plans are offered by these companies: 

1. Mutual of Omaha offers $5000-$50,000 coverage for 0-17 age range, whole life child insurance.
2. Gerber Life offers $10,000-$50,000 coverage for 0-14 age range, whole life child insurance.
3. Globe Life offers $5000-$30,000 coverage for 0-24 age range, whole life child insurance.
4. Foresters Financial offers $5000-$1,000,000 coverage for 0-17 age range, whole life child insurance.
5. Royal Neighbors of America offers $10,000-$49,000 coverage for 0-17 years, whole life child insurance.
6. Transamerica offers $1000-$50,000 coverage for 0-17 age range, whole life child insurance.

How much does child life insurance usually cost?

Let’s see an example to get the picture, a 10-14 years’ old child would be paying $25 premium every month if his father bought a $50,000 coverage child life insurance policy for him.

What are the Benefits of the child life insurance plans?

1. Probability of easier future insurability: once insured, always insured! If the child is insured at age 14 days, he will easily qualify for life insurance with other firms in future for lenient underwriting and no medical exams.
2. Funeral costs: God forbid for any traumatic death of a child, his funeral costs would be paid for, from his whole life child insurance policy death benefit payout.
3. Savings plan: The Cash Value component for child’s account will incur money with every monthly premium his father makes, so including the interest accrued on it, the child becomes an owner of a behind-the-scenes savings account.
4. Locked-in low premiums: younger the age, lower the premiums.

What are the Setbacks of buying a Child whole life insurance plans?

Worst savings idea ever!

it is so much better for parents to save money for the child in an actual savings bank account. The coverage of $50,000 is not enough for a child from age 0-26. He would need more coverage for his education fees. 

Instead, parents should get least coverage child insurance of about $15,000 to make sure his funeral is covered, god forbid anything happens to him. Collect huge savings for his educational expenses and later life inform of savings accounts in a bank or real estate assets, which he can liquidate.

Least chances of an actual death benefit payout

Since fortunately seldom a child dies, the death benefit payout usually isn’t paid to parents or anyone else. It is somewhat an accessory except for covering the funeral ceremony. The legal guardians should buy $15,000 or less coverage whole life child insurance to ensure his funeral till he becomes 26 years old. 

They should open a savings account for their baby and keep adding a monthly amount to it themselves. But people who are lavish or extravagant, careless with spending, go for his child life insurance instead. Something is better than nothing!

Who is eligible to buy child life insurance?

The child’s father, his mother, his grandparents, his great grandparents and his guardians can buy child life insurance for him, without his consent or participation. Furthermore, the great grandparents or grandparents do not need approval or consent from the child’s parents. It is a small coverage, low affordable premium whole life insurance policy. It is easily bearable for guardians. 

Is Gerber Life’s “Grow Up Plan” suitable for your child?

It offers instant death benefit payout in 24-48 hours after claim approval, and offers $10,000-$50,000 coverage for your child. Fixed low cost premiums till the age of 14 years. It is awesome for parents with a wealthy background. However, parents who want a much more cost-effective option should go for “Mutual of Omaha” or “Globe Life”.

Do you have to take your child for the life insurance application process?

No, you do not have to involve your kids in any such activities. In fact it is your own decision whether to inform them or not. It is irrelevant since a child is not likely to make any sensible decisions till 14-17 years. Their participation and consent is not required, even when they’re 26 as is allowed for some whole life child insurance companies mentioned in the pre-text.