There’s a lot to think about when your family is growing. Whether you’ve recently welcomed a child through birth, adoption, or marriage, the future may feel full of unknowns. You do everything you can to keep your child safe—installing car seats, covering electrical outlets, and using baby gates—but have you considered how life insurance could be another way to protect them?

While it’s not something many parents think about, life insurance offers more than just financial protection in the event of the unthinkable. It can also give your child future security and financial opportunities as they grow.

What Are the Benefits of Juvenile Life Insurance?

There are three primary reasons parents choose to purchase life insurance for their children: guaranteed coverage regardless of future health, the ability to lock in lower premiums, and access to cash value that can be used later in life.

Guaranteed Coverage for the Future

Health can be unpredictable. A childhood illness, medical condition, or disability could make it difficult—or even impossible—for your child to qualify for life insurance as an adult. By purchasing a policy now, you can ensure they can maintain coverage for years.

Many juvenile life insurance policies include a guaranteed insurability option (GIO) or a guaranteed purchase option (GPO). These riders allow your child to increase their coverage at specific times in the future, regardless of any changes in health.

Locking in Lower Premiums

Life insurance rates are at their lowest when the insured is young. By securing a policy now, you can take advantage of lower premiums and lock in an affordable rate for the duration of the contract. You may want to consider purchasing a policy:

• At birth – This is when premiums are typically at their lowest.
• Before age 18 – Securing coverage before adulthood can provide long-term financial protection, even if your child develops a health condition later.

Cash Value for Future Opportunities

Permanent life insurance policies accumulate cash value over time. This savings component can help cover major expenses, such as a down payment on a first home, college tuition, or even retirement savings. The flexibility of this benefit makes life insurance a potential financial tool for your child’s future.

Choosing the Right Type of Life Insurance for Your Child

Different types of permanent life insurance can provide long-term benefits. The right choice depends on your family’s financial goals and needs.

• Whole Life Insurance: This policy provides lifelong coverage with guaranteed cash value growth, regardless of market conditions. Premiums remain fixed, making it a stable option for long-term planning.
• Universal Life Insurance: Offering more flexibility, this type of policy allows for adjustable premiums and coverage amounts. It also builds cash value, which can be borrowed against for future needs.
• Variable Universal Life Insurance: This policy includes investment options, allowing more significant cash value growth. However, it also carries more risk due to market fluctuations.

Is Life Insurance for Your Child the Right Choice?

Every family’s situation is unique and deciding whether to purchase life insurance for your child is personal. While it may not be necessary for everyone, it can be a valuable tool for financial security, providing long-term economic benefits. If you’re considering a policy for your child, an experienced professional juvenile life insurance agent can help you explore options and determine the best plan for your family’s needs. Give our office a call to schedule a free consultation today.