Quick answer
Life insurance for a baby usually makes sense in only two narrow situations: (1) the family wants to lock in lifetime insurability against a future health condition - most useful when there is family history of cancer, diabetes, or heart disease before age 50, or when the child has special needs; and (2) the family wants a small cash-value savings vehicle that the child can access at age 25 to 30. For most families, a Child Rider on the parents policy is the better path - typically about $1.20 per $1,000 of coverage and ALL children on the policy share one premium. Standalone childrens whole life from Gerber Life Grow-Up Plan or Mutual of Omaha Childrens Whole Life makes sense in those narrow cases but is rarely a good pure-savings vehicle compared to a 529 plan or custodial Roth IRA.
Yes! Obtaining life insurance for kids can provide them coverage and benefits early in life at a much lower cost than waiting until they are older.
Best Children's Life Insurance Companies
The carriers below all offer dedicated children's whole life or juvenile life insurance products. Each is A.M. Best A or higher. We have removed Globe Life Children's Coverage from this comparison because Globe Life products are direct-only and we cannot offer them through our brokerage.
| Company | Recommendation | Rating | Best for | Quote |
|---|---|---|---|---|
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Recommended. Grow-Up Plan whole life. Coverage $5,000 to $50,000 (doubles automatically at age 18). Ages 14 days to 14 years. Apply online or with an agent. |
★★★★★ Gerber Life Review |
Best overall children's whole life. Coverage automatically doubles at age 18 with no additional premium. | Go |
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Recommended. Children's Whole Life. Coverage $5,000 to $50,000. Ages 14 days to 17 years. Guaranteed purchase option rider available. |
★★★★★ Mutual of Omaha Review |
Best children's whole life from a mainstream carrier with strong guaranteed-purchase option for adult ages. | Go |
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Recommended. Advantage Plus II Juvenile whole life. Coverage $10,000 to $250,000. Ages 14 days to 17 years. Member benefits included. |
★★★★★ Foresters Review |
Best children's whole life for larger face amounts. Up to $250,000 with fraternal member benefits. | Go |
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Recommended. Plus Whole Life for juveniles. Coverage $25,000 minimum. Strong dividend history. Agent assisted. |
★★★★★ A+ rated mutual |
Best dividend-paying juvenile whole life for grandparents funding cash-value accumulation for a grandchild. | Go |
Benefits of buying life insurance for a baby
The chances of a healthy baby dying are statistically very low.
Furthermore, a baby is obviously not an individual who has to worry about providing for any dependents in the event of their death. Though funeral costs and future income are among the primary reasons an adult would want to buy life insurance, there are other reasons as well that are uniquely applicable to children.
Guaranteed insurability:
The ability to qualify for life insurance depends upon a number of different conditions. An individual’s health and age can tremendously impact their ability to qualify. Naturally, when someone is a baby, they are the youngest and they will ever be.
Babies have the longest amount of life left to be lived. In the eyes of an insurance company, this means they will not have to “cash in” on their policy for a very long time. Because babies are such low-risk life insurance policyholders, they are essentially guaranteed to qualify for nearly all possible life insurance policies (usually after they are 14 days old).
The lowest possible monthly rates:
In addition to being able to qualify for life insurance in general, babies are also able to qualify for the lowest possible rates. One of the reasons that many parents consider getting life insurance for a newborn baby is that they have a unique opportunity to “lock in” the lowest monthly rates on the market.
By having these rates locked in, your baby will be protected from rate increases that will inevitably happen as they get older or as their health begins to worsen over time. Not only will the monthly cost of life insurance be less for an individual who qualifies for a plan early in life, but the total cost of the plan might end up being less as well.
A potential savings vehicle for the future:
Life insurance is about more than just financial security. Life insurance can be a very practical vehicle that enables financial growth as well. In fact, many individuals buy life insurance because they will not only be able to provide for their loved ones in the event of their death, but because permanent life insurance policies can generate a respectable return on investment.
The savings component of whole-life (permanent) insurance policies is tax-deferred and can often outperform other conservative saving vehicles. Depending on the specific policy you end up choosing, life insurance can be used a vehicle that can help save for your child’s college tuition or other future financial goals. The ability to be saving while also staying protected makes life insurance a particularly attractive financial asset for many parents and grandparents.
Maximum amount of time for growth:
The savings component of whole life insurance is known as cash value. As is the case with most financial assets, cash value is something that increases over time. Naturally, the longer you have a given life insurance policy, the more amount of time you will have to let your policy’s cash-value grow. By purchasing life insurance for your newborn baby, you will be able to maximize the amount of time their cash value can increase.
Though there are certainly many reasons to buy life insurance for your children, there are of course also some reasons not to buy life insurance for your children. When evaluating the pros and cons of children’s life insurance, it is important to consider the alternative options you might have available.
Ready to get a children's life insurance quote? Start here
Frequently Asked Questions
Should I get life insurance for my baby?
For most families, a small Child Rider on the parents policy is sufficient and far cheaper than a standalone childrens policy. A standalone childrens whole life policy is most useful in two narrow cases: (1) the family has a strong history of cancer, diabetes, heart disease, or other insurable conditions before age 50 - then a $50,000 policy bought at infancy locks in lifetime insurability regardless of any later diagnosis, and (2) the child has special needs and will require lifelong financial coverage - then a permanent policy is the appropriate estate-planning tool. For pure savings goals (college, wedding, home down payment), a 529 plan or custodial Roth IRA usually beats childrens whole life on after-fee return.
How much does life insurance cost for a baby?
Child Rider coverage on the parents policy typically runs about $1.20 per $1,000 of coverage per child - so $20,000 on each of 3 children runs about $72 a year ($6 a month) and covers all 3 kids on one rider. Standalone childrens whole life from Gerber Grow-Up Plan starts at around $4 to $20 a month for $5,000 to $50,000 in lifetime coverage; premium scales linearly with face amount. Mutual of Omaha Childrens Whole Life runs around $7 to $30 a month for the same face amounts. The premium stays locked for the childs entire life.
What is the Gerber Life Grow-Up Plan?
The Gerber Life Grow-Up Plan is a small whole life policy designed for children ages 14 days through 14 years. Face amounts range from $5,000 to $50,000. At age 18, the face amount doubles automatically with no increase in premium. Coverage continues for life and the child becomes the owner of the policy at age 21. The Grow-Up Plan builds modest cash value over time that the policyholder can borrow against or surrender. Premium ranges from about $4 to $30 a month depending on the face amount and the childs age at issue.
What is a Child Rider on a life insurance policy?
A Child Rider (also called Child Term Rider or Children Insurance Benefit) is an add-on to the parents term or permanent life insurance policy that covers all of the parents children for a single low premium. Typical coverage is $5,000 to $25,000 per child, with the SAME face amount covering each child regardless of how many children are in the family. Premium is typically about $1.20 per $1,000 of coverage, so $20,000 on all kids runs about $72 a year. The rider terminates when the parents policy terminates or when each child reaches a defined age (typically 23 to 25), at which point each child can convert their share to permanent coverage with no medical exam.
Is life insurance for babies a good investment?
Life insurance is rarely a good pure investment compared to traditional savings or retirement vehicles. A $50,000 Gerber Grow-Up Plan with $20 a month premium accumulates around $5,000 to $8,000 in cash value by age 25 - a roughly 0 to 2 percent annual return after fees. The same $20 a month deposited into a 529 plan in a low-cost S&P 500 index fund typically grows to $12,000 to $18,000 over the same period (assuming a 7 percent average annual return). Childrens whole life is best understood as INSURANCE with a small savings tail - the value is the locked-in insurability, not the return.
Can I get life insurance on my grandchild?
Yes, grandparents have presumed insurable interest in grandchildren and can purchase coverage on a grandchilds life with the parents written consent. The grandparent applies as Owner and Payer; the parent signs the consent and health questionnaire. The grandchild becomes the Insured. Common grandparent-buyer scenarios: $25,000 to $50,000 in childrens whole life as a generational legacy gift, or a Child Rider on the grandparents own policy at $1.20 per $1,000. Many carriers (Gerber Life, Mutual of Omaha, Foresters) market specifically to grandparent buyers.
At what age can a baby get life insurance?
Most carriers issue life insurance from age 14 days through age 17 or 18. Gerber Grow-Up Plan starts at 14 days and issues through age 14. Mutual of Omaha Childrens Whole Life starts at 15 days and issues through age 17. Foresters Adv (Premier Whole Life) issues from birth through age 17. Child Riders on parents policies typically cover children from age 15 days through age 18 to 25 depending on the carrier.
What happens to a babys life insurance policy when they grow up?
Standalone childrens whole life policies (Gerber Grow-Up Plan, Mutual of Omaha Childrens Whole Life) transfer ownership to the now-adult child at age 21 (Gerber) or age 18 (most others). The policy continues for the full life of the insured with locked premium. Many of these policies also include a Guaranteed Insurability Rider that lets the now-adult child purchase ADDITIONAL coverage at specified life events (marriage, home purchase, birth of a child) without a new medical exam. Child Riders on the parents policy typically terminate when the child reaches a defined age (usually 23 to 25) but include a Conversion Privilege so the child can buy their own permanent policy at that time with no medical exam.
Can I use a babys life insurance policy to pay for college?
Technically yes, but it is rarely the most efficient way to fund college. A standalone childrens whole life policy with $25 a month premium accumulates roughly $5,000 to $9,000 in cash value by age 18. The same $25 a month into a 529 plan typically grows to $9,000 to $13,000 over the same period (assuming a 7 percent average annual return). Furthermore, life insurance cash value is treated as a parent asset in FAFSA financial aid calculations (which only counts 5.64 percent of parent assets), whereas 529 plan balances are also treated as a parent asset - so the financial-aid advantage of life insurance over a 529 is minimal. Use a 529 for college savings; use childrens life insurance for insurability protection.
Do I need life insurance on my baby if I already have term life insurance on myself?
Generally no - adding a Child Rider to your existing term policy is far cheaper than buying a separate childrens policy and gives most families adequate funeral-cost coverage if the unthinkable happens. Standalone childrens policies make sense only in the two narrow cases mentioned above: locking insurability against future health conditions (with strong family medical history) or estate-planning for a special-needs child. For all other purposes, your money is better spent making sure YOUR term policy is large enough - parents represent 95 percent of the financial risk to a family, not children.
