Should you buy Life Insurance for your Children

Should you buy Life Insurance for your Children

Are you torn between making your child’s future safe by getting him/her a life insurance policy and investing the extra money on something that will yield massive dividends in the future?

To answer your question: The decision to buy a life insurance policy for your child is purely based on your current financial condition. To get your child insured for life, you will have to pay monthly premiums until they turn 21. The premium amount does not change if you continue to pay them on time. So, yeah, if you think you can paying a certain amount every month is not a big deal, go ahead and get your child a life insurance policy.

life insurance

Secondly, it’s not all about your child’s future. As a parent, you must be aware of the fact that raising a child is very expensive. And it also takes considerable effort and commitment from both the father and the mother. What if something happens to your child before they turn 18?

You will be left with nothing but memories and a tough life ahead. Losing a child the most difficult thing for a parent. Consequently, a life insurance company provides a massive compensation($10,000-$30,000) if your child dies before the age of 18. You can use this money for your child’s funeral expenses and also support you in the upcoming months as going to work will seem gruesome.

Is it difficult to get life insurance as an adult? Why is it recommend to buy it in childhood itself?

Getting life insurance for a newborn child is a piece of cake. You don’t need to perform expensive blood tests and there are no medical history issues. You can get life insurance for your child in one easy step.

Things get a bit stringent when an adult applies for life insurance. Insurance companies don’t want to take a risk by paying a huge sum of money to a deceased person’s family(after their death).

Lastly, what if your child fails to make enough money to be able to afford life insurance at the age of 18 or above? Instead of living the rest of your life in resentment, do yourself and your child a favor by buying life insurance while it is available for cheap.

Term or Permanent life insurance for a child?

Term life insurance will cover your child until they turn 30. You have to the premiums annually and they are usually fixed. While permanent life insurance will cover your child until death. Permanent life insurance is not recommended for a child since the premiums are higher, but you get the same amount of coverage like that of term life insurance. The only benefit it has is you can borrow money against it.


Going back to the first question. You can opt to invest your extra cash in stock or mutual fund savings but that will only benefit you and not your child. It would be wise to diversify your investment portfolio by buying a cheap life insurance policy like TIAA and also continue investing in stocks.

State Farm and TIAA are two of the best term life insurance policies in America.