Life Insurance for Children: What Parents Should Know

Life insurance for adults is a familiar concept. But life insurance for children? That’s a little less common and understandably raises questions for many parents. Do children really need life insurance? What kind of policies are available? And how does it work, especially for a newborn, infant, or young child?

While it’s not a must-have for every family, child life insurance can offer a few key benefits, from securing long-term coverage early to building a small savings cushion over time. In this guide, we’ll walk through the basics of life insurance for kids, how it works, who might consider it, and what to keep in mind when exploring your options.

What Is Life Insurance for Children?

Life insurance for kids is typically a whole life insurance policy purchased by a parent, guardian, or grandparent for a child, usually from infancy up to age 17. These policies are designed to provide a death benefit if the child passes away, but their primary appeal often lies in the added benefits.

Unlike term life policies, which expire after a set number of years, whole life policies offer lifelong coverage as long as premiums are paid. They also build cash value over time, which can be accessed later in life.

These policies are usually low-cost because children are generally healthy and very low risk to insure. Many insurers offer coverage starting as low as $25,000, with premiums that remain fixed for the life of the policy.

Why Would Parents Consider Buying Life Insurance for a Child?

There are a few factors that make child life insurance appealing, such as:

Guaranteed Insurability Later in Life

Some policies for children offer a guaranteed insurability rider, meaning the child can purchase additional coverage later in life regardless of any future health issues.

Cash Value and Savings Over Time

Whole life insurance policies for kids build cash value over time. This savings component grows tax-deferred and can be borrowed against in the future for major expenses.

Financial Protection and Funeral Expenses

Although the likelihood is low, losing a child is an unimaginable tragedy – and life insurance can help cover the cost of final arrangements. A policy may provide funds for funeral expenses, medical bills, or time away from work to grieve, helping reduce financial strain during an already devastating time.

Peace of Mind for Families

For some families, buying life insurance for a child offers an added layer of security. It ensures coverage is in place early and may reflect a desire to protect the child’s long-term financial future. While not a financial necessity, it can offer parents or grandparents peace of mind knowing they’ve taken a proactive step.

Pros and Cons of Buying Baby or Infant Life Insurance

Buying life insurance for a child is a personal decision, and one that comes with both potential benefits and drawbacks. Below are some key considerations to help you weigh your options.

Pros

Long-Term Coverage at a Low Rate

Purchasing a policy early means locking in a low premium for life. Since infant life insurance is based on age and health, young children typically qualify for the most affordable rates. 

Financial Safety Net for the Unexpected

While it’s difficult to imagine, if the unthinkable happens, a life insurance policy can help cover funeral costs and related expenses.

Builds Cash Value Over Time

Many baby life insurance policies are whole life policies, which include a savings component that grows tax-deferred. That cash value can be accessed later in life for expenses like education costs.

Guaranteed Insurability

Some children’s life insurance policies offer guaranteed insurability, meaning the child can buy more coverage later on, even if they develop a medical condition that might otherwise make them ineligible. This can provide long-term peace of mind for families with health concerns.

Cons

Not a Financial Necessity

For most families, coverage for adults is a more urgent need. Life insurance is primarily designed to replace income and cover financial responsibilities, which typically doesn’t apply to children.

Slow Cash Value Growth

While these policies do accumulate cash value, the growth is relatively slow, especially in the early years. Other financial tools may offer higher returns with greater flexibility.

Limited Coverage Amounts

Many children’s policies have low face values, often ranging from $5,000 to $50,000. This may not meet future coverage needs, meaning the child may still need to buy additional insurance later.

Opportunity Cost

Money spent on a baby life insurance policy could be invested elsewhere for potentially greater financial benefit.

What Age Can You Buy Life Insurance for a Child?

In most cases, you can purchase whole life policy for newborns as soon as they are 14 days old. Many insurers set this as the minimum age for eligibility, though some may allow policies for infants even sooner.

There are a few reasons why 14 days is a standard minimum age:

• Medical stability: The first two weeks of life are considered a critical period where many potential health complications can emerge. Insurers want to ensure the child is medically stable before issuing a policy.
• Birth certificate and Social Security number: These identifiers are often needed to complete the application, and they may not be issued immediately after birth. The 14-day window typically allows time for this documentation to be processed.

Getting coverage early comes with a few distinct advantages. One of the biggest is the ability to lock in the lowest possible premiums. Because life insurance pricing is tied to age and health, purchasing a policy during infancy or early childhood, when your child is likely at their healthiest, means you’ll secure a rate that stays fixed for life, regardless of future changes in health.

In addition, buying early maximizes the time for the policy’s cash value to grow. With whole life insurance for children, the savings component accumulates slowly over time. The earlier you start, the more time there is for that cash value to build and compound.

So while you can typically purchase coverage any time before a child turns 18 (and sometimes older, depending on the insurer), the earlier you start, the more potential benefits your child can gain down the road.

Best Life Insurance Options for Children in 2025

When exploring the best life insurance for kids, there are a few key policy types to consider. Here are the top choices parents might consider:

1. Child Whole Life Insurance

• Coverage amount: Typically $10,000–$50,000.
• Cost: Premiums are generally affordable depending on the coverage amount and the child’s age.
• Growth potential: These policies accumulate cash value at a guaranteed rate, which can be borrowed against or used later in life.
• Locked-in premiums: Rates are based on the child’s age at the time of purchase, and they remain level for life, even if the child develops health issues later.

2. Riders on a Parent’s Policy

• Coverage amount: Limited, often capped around $10,000 - $25,000.
• Cost: Typically low, just a few extra dollars added to the parent’s premium.
• Growth potential: These riders don’t include cash value, but they offer a simple way to get basic protection.
• Convertibility: Many riders can be converted into a separate permanent policy when the child reaches adulthood, and without a medical exam in most cases.

3. Stand-Alone Juvenile Policies from Major Insurers

• Coverage amount: More flexible, some go beyond $50,000.
• Cost: Slightly higher than a rider but still reasonable due to the child’s age and health.
• Growth potential: Many of these offer dividend-earning potential (depending on the insurer), which can further enhance long-term cash value growth.

When comparing the best life insurance for kids, it’s important to look beyond price. Think about the policy’s long-term value and how it may fit into your overall financial plan.

Understanding Whole Life Policies for Newborns and Children

• Whole life insurance is the most common type of policy available for kids, including infants and young children. Here’s what parents should know when considering this type of policy:
• Premiums are locked in early. Since rates are based on age and health at the time of application, starting a whole life policy in infancy ensures the lowest possible monthly premium.
• Coverage never decreases or expires. Unlike term life insurance, whole life policies won’t run out after a set number of years. This means your child will have lifelong protection.
• The policy builds cash value over time. Over time, this cash value can be borrowed against or used for expenses.
• Guaranteed insurability is built in. Many whole life policies for children include a feature that lets the child purchase additional coverage as an adult even if their health changes.

Whole life insurance for newborns and children is often framed as both a financial tool and a legacy gift. Parents and grandparents may choose these policies to give their child a financial head start and the peace of mind that coverage will always be in place.

How Much Does Child Life Insurance Cost?

Child life insurance is often quite affordable, but costs vary based on policy type, coverage amount, and the child’s age.

The cost of a whole life insurance policy for children ranges from about $3 to $27 per month(1) for a child under age one, depending on the coverage amount and payment schedule you choose (coverage amounts for those premiums range from $5,000 to $50,000.)

Another option many parents choose is to add a term rider to their existing insurance policy. A child term rider will generally add an additional $5 to $7 per $1,000 of coverage per year to your policy premium. For instance, if your rate is $5 per $1,000 of coverage and you buy a $15,000 child term rider, you can expect to pay about $75 a year, or $6.25 a month(2).

What Affects the Cost?

As with life insurance for adults, there are a few factors that contribute to the premium costs for child life insurance. They include :

• Child’s age: Younger children generally qualify for lower rates.
• Coverage amount: Higher benefit amounts will increase the cost.
• Policy type: Whole life includes cash value and lasts a lifetime, which usually makes it more expensive than a simple term rider.

In summary, a whole life policy for an infant is affordable for most budgets, while a child term rider may be even less expensive. When deciding on the best option, weigh the fixed cost and lifelong protection of whole life against the lower cost and simplicity of term riders.

Is Life Insurance for Kids Worth It?

Whether child life insurance is “worth it” depends on your goals as a parent. These policies offer benefits that go beyond just financial protection, but they’re not for everyone.

Why Some Parents Say Yes

• Guaranteed coverage for the future
• Locked-in premiums
• Cash value accumulation
• Emotional peace of mind

Why Others Pass

• Limited investment growth
• Low immediate need
• Term riders may be sufficient

Ethos and Life Insurance for Families

While Ethos does not currently offer standalone life insurance policies for children, that doesn’t mean families are out of options. In fact, one of the most powerful ways to protect your child’s future is to ensure you're covered yourself.

If you're a parent or guardian, life insurance can help your loved ones maintain financial stability in case something happens to you. It can cover everyday expenses, help with long-term goals like college tuition, and even allow your partner or co-parent time to adjust without financial strain.

Ethos specializes in term and whole life insurance options designed to fit real families. Many of our policies don’t require a medical exam, and the online application process can take just minutes. Plus, some policies include a savings component, so you can protect your family and build financial security at the same time.

While a child policy may not be available through Ethos, securing the right coverage for yourself is one of the most meaningful steps you can take toward protecting the people who matter most. Click here to see just how affordable coverage can be with Ethos.

FAQs About Child Life Insurance

Parents often weigh the pros and cons of child life insurance carefully. Here are answers to some common questions to help you make an informed decision.

Can you get life insurance on a newborn?

Yes, in most cases, you can purchase life insurance for a newborn starting at 14 days old. That short waiting period allows insurers to confirm the baby is healthy enough to qualify for coverage. Getting coverage early can help lock in the lowest rates and ensure guaranteed insurability for the child in the future.

Can I get a life policy that builds savings for my child?

Yes. A whole life insurance policy for a child includes a cash value component that grows over time. That value can be accessed later in life, either by borrowing against it or surrendering the policy. While it's not a substitute for a traditional savings plan, it can offer a layer of financial flexibility.

What happens when the child becomes an adult?

Ownership of the policy can typically be transferred to the child once they reach adulthood, often around age 18 or 21, depending on the insurer. The child can then decide whether to continue the policy, use the cash value, or make other changes to the coverage.

What if my child develops a medical condition later?

One of the main advantages of child life insurance is guaranteed insurability. As long as premiums are paid, the policy remains in force, even if the child is later diagnosed with a serious health condition. This can offer valuable peace of mind, knowing they’ll have coverage no matter what their future holds.

The information and content provided is for informational purposes only, and it is not to be considered legal, tax, investment, or financial advice, recommendation, or endorsement. You should consult with an attorney or other professional to determine what may be best for your individual needs. Guarantees are based on the claims paying ability of the issuer.