How Does Children’s Life Insurance Work?
Children’s life insurance is a policy that insures a minor’s life, the same way an adult’s policy insures their life. While the policy is in force, the insurer would pay the death benefit to the beneficiary if the child should pass away.
Life insurance for minors is most often a whole life insurance policy or universal life insurance, both of which are types of permanent life insurance. However, some companies offer a children’s term life insurance policy, but it’s very uncommon.
With whole life and universal life, a small portion of your premium payments goes into an interest-bearing account called “cash value.” At any point in the child’s life, the equity accumulated in the cash value account can be withdrawn by the policyholder and spent on college expenses, debts, or anything else.
When Buying Life Insurance For A Minor Is A Good Idea
There are many positive benefits of buying a child’s life policy, such as:
- Secures a permanent lifelong policy for them at a very low price that is usually guaranteed to never increase.
- There is a guarantee that they can buy more coverage as an adult without having to qualify for it. In other words, as adults, they can get additional coverage even if they are in poor health when they opt to add more.
- Pays for funeral costs and provides a financial safety net that gives loved ones the financial means to step away from work or other economic responsibilities during the grieving process (which is often very lengthy when a child dies).
When Is Buying Children’s Life Insurance Not A Good Idea?
You should not buy life insurance for a minor if your sole goal is to provide them with money as a living adult. The primary reason for this is that the cash value that will accumulate in the policy will be substantially less than what actual investment products would produce.
Instead, you should seek out traditional investment products such as mutual funds, stocks, and bonds, to name a few. Ultimately, you should speak with a qualified investment advisor (RIA) who can properly advise you of your options and make appropriate recommendations based on your goals and budget.
How Much Does Children’s Life Insurance Cost?
Life insurance rates for a child depend on several factors, including age, gender, coverage amount, policy type, health history, and the insurance company you choose.
Below is a chart showing the monthly cost of Mutual of Omaha’s children’s life insurance for various coverage amounts and ages. Mutual of Omaha charges the same price for males and females.
| AGE | $10,000 | $25,000 | $50,000 |
|---|---|---|---|
| 0-4 | $4.61 | $10.02 | $19.04 |
| 5-9 | $5.43 | $12.08 | $23.17 |
| 10-14 | $6.15 | $13.87 | $26.75 |
| 15-17 | $7.75 | $17.87 | $34.75 |
| Source for monthly prices: Choice Mutual child quote calculator. Rates valid as of 09/15/2025. | |||
The life insurance quotes below (monthly premiums) for higher death benefit amounts will likely come with additional underwriting requirements.
For $100,000 or more, you will need to speak with an agent. Additionally, you may need to provide copies of your children’s medical records and meet income requirements. Underwriting conditions vary by the company and are based on how much coverage you seek.
| AGE | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| 1 | M: $112.39 F: $88.77 | M: $216.30 F: $169.49 | M: $426.30 F: $332.68 |
| 5 | M: $132.30 F: $103.64 | M: $255.68 F: $199.24 | M: $505.05 F: $392.18 |
| 10 | M: $161.18 F: $123.99 | M: $312.99 F: $239.49 | M: $619.68 F: $472.68 |
| 15 | M: $193.99 F: $146.52 | M: $378.18 F: $284.11 | M: $750.05 F: $561.93 |
| Source for monthly prices: Choice Mutual child quote calculator. Rates valid as of 09/15/2025. | |||
Pros And Cons Of Buying Life Insurance For A Minor
Generally speaking, life insurance is valuable financial protection for any individual (adult or child). However, buying life coverage for a child is a matter of preference because of the pros and cons.
You should speak with a competent financial professional to help determine if coverage for your kids or grandkids is right for you.
- Future insurability: One of the many benefits of life insurance for children is the guarantee that they can buy additional coverage as adults. The insurance company will allow the insured child to purchase more coverage (up to a certain amount) without requiring evidence of insurability. That means their health or lifestyle cannot prevent them from getting the additional insurance. For example, if your child were to develop a high-risk medical condition such as cancer in their 20s or 30s, the policy you purchased now would entitle them to buy additional coverage. Their cancer would not prevent them from obtaining additional insurance.
- Final expenses: Although a child’s chances of dying are slim, it does, unfortunately, happen. An average burial in the USA costs around $10,000, and cremation cremation costs as much as $6,000. The death benefit payout can cover their funeral expenses, so you don’t have to resort to going into debt or fundraising via platforms like GoFundMe. That peace of mind is why most parents opt to insure their children.
- Savings plan: Cash value in a permanent life insurance policy is like a behind-the-scenes savings account. Every time you make a payment, a percentage of the revenue goes into the cash value account. Plus, it usually earns interest, causing it to grow even more. The policy owner is entitled to withdraw funds from this account and spend the money in any way.
- College loan protection: The average college student owes $37,090 in federal loans. A child’s life insurance policy can ensure these debts are paid off if the child passes while these loans are outstanding. That’s especially valuable if you cosigned on some of their loans.
- Locked-in low prices: The cost to insure a child’s life is minimal since they are so young. Buying coverage for a minor at a young age allows you to secure a very low price that will never increase as they age.
- Low amounts of coverage: Most children’s life insurance plans offer less than $100,000 in protection. Adults often need high amounts of coverage ($500,000+) to ensure they can replace their income or pay off large debts such as a mortgage. Buying ≤ $100,000 for a child will do little to help cover their life insurance needs as an adult.
- The worst mechanism for saving money: Life insurance isn’t the best tool if you aim to build up cash for your child’s future. Yes, permanent children’s life insurance plans build cash value over time, but the amount is minimal. Even if 100% of your premiums were to go into the cash-value account (it’s closer to 50%), it’s still only going to amass a few thousand dollars at best. If your sole objective is to save money for a child, other financial products would be superior.
- Meager chance of payout: There is a very slim chance the policy will pay the death benefit because children rarely die. According to the CDC, the chance of children 1-4 years dying is 25.0 per 100,000 (0.025%). For children 5-14 years, it’s 14.3 per 100,000 (0.0143%).
Requirements To Buy Life Insurance For A Juvenile
Only the following people can purchase life insurance for a child: a parent (step, biological, or adoptive), grandparent, great-grandparent, or legal guardian.
It’s worth noting that grandparents can buy life insurance for grandchildren without receiving consent from the child’s parents.
| Underwriting Requirements | <$100,000 in Coverage | >$100,000 in Coverage |
|---|---|---|
| Minimum age | 14 days | |
| Medical exam | No | |
| Questions about health | Yes | |
| Extensive questions about full medical history | No | Yes |
| Medical records subpoenaed | No | Yes |
| Can buy online without talking to an agent | <$50K: Yes >$50K: No | No |
| Typical approval time | Instantly | 2-3 weeks |
| Sufficient parents's income* | No | Yes |
| Parent's own life insurance** | No | Yes |
**High coverage amounts typically require that the parent has at least double the coverage they seek for the child.
Best Children’s Life Insurance Companies
- Low prices- Relative to other children’s life insurance providers, Mutual of Omaha usually offers the lowest rates.
- Quickly buy up to $50,000– Their online application is simple to use, and you can cover your kids for up to $50K in coverage.
- Valuable free riders- Mutual of Omaha includes a guaranteed insurability rider (kids can buy more coverage as adults) and a waiver of premium rider (premiums are waived for 90 days if the owner dies) at no extra cost.
- Online application– You can fully apply online without having to speak with an agent if you prefer not to.
- No direct bill or credit cards– If you want to pay your premiums monthly, you cannot mail in payments or use a credit card. Monthly payments can only be made via automatic deduction from a checking or savings account (on a day you choose).
- No limited pay option– The only option is “life-pay,” which means you pay indefinitely. There is no limited pay option that would pay up the policy after 10, 15, or 20 years.
Mutual of Omaha stands out as the best child life insurance policy due to its low prices, complimentary riders, and ease of doing business with them.
The guaranteed insurability rider allows the insured minors to buy more coverage up to five times as an adult. The additional life insurance is a guaranteed issue, meaning they cannot be denied for any health or lifestyle reasons. The following life events trigger the option to buy more coverage:
- The policy anniversary dates following the insured’s 25th, 30th, 35th, and 40th birthdays
- The insured’s marriage, domestic partnership, civil union, or equivalent relationship
- The insured’s birth or adoption of a child
- The purchase of a home
The waiver of premium rider will waive all premiums due for 90 days if the policy owner dies. That allows ample time for someone else to take over the payments so the policy does not lapse.
Their online application is simple and much more user-friendly than those of other child life insurance companies. For example, you can list up to eight children in a single application rather than having to create an application for each child.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).
S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).
- Accepts children aged 18-25– Parents can buy a policy for their adult children aged 18-25 without requiring their participation.
- Great prices– Globe Life rates are on the lowest end of the spectrum. Only Mutual of Omaha offers lower prices.
- Online application– You can apply online without speaking with a licensed agent.
- Low coverage maximum– Globe Life will only sell up to $30,000 in coverage, whereas most other companies go up to $50,000 and more.
- Numerous consumer complaints– Globe has a very high complaint ratio with the NAIC, well beyond the average. Plus, most review websites, like the Better Business Bureau or consumeraffairs.com, note a higher number of objections.
Globe Life is exceptionally rare because they allow you to buy coverage for adult children or grandchildren up to age 25. All other children’s life insurance companies stop accepting applications once children are 18.
Like most other providers, Globe also guarantees that the insured children have the right to purchase additional coverage as adults without having to qualify for it.
Globe Life offers multiple payment options, including credit card, bank draft, and mail payments.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).
S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).
- Coverage doubles at 18—When the child turns 18, the death benefit doubles, while the premium remains the same.
- Flexible payment options– You can pay via credit card, an automatic bank draft, or by sending in a money order.
- Certain health issues are acceptable– Depending on the specific condition(s), Gerber Life may still be able to offer coverage that other companies would decline.
- Online application– You can fully apply online without speaking with a Gerber Life insurance agent.
- Prices are much higher than those of other companies—Gerber Grow Up Plan rates are nearly double what companies like Mutual of Omaha and Globe Life charge.
- Ownership automatically changes at 21– When the kids turn 21, Gerber automatically makes the child the policy owner, giving them complete control. Other companies allow the person who bought the policy control to choose when and if they want to transfer ownership.
Gerber doubles the coverage amount of the policy when the child turns 18, and the price remains the same.
Another great benefit of working with Gerber Life is that they will accept children with health issues. For example, children with diabetes or asthma can still qualify for a policy (with a higher premium). Generally, companies offering children’s coverage will deny applicants with ongoing health ailments.
There is a guaranteed insurability rider that ensures the children can buy more coverage as adults. The additional coverage is guaranteed, meaning they cannot be denied for any health or lifestyle reasons. Gerber allows the child (as an adult) to buy more coverage up to four times.
An optional “payment protection rider” is available for an additional cost. This rider waives all premiums if the policy owner becomes totally disabled or dies before the child’s 21st birthday.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).
S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).
- High coverage maximum– Foresters allows you to buy up to $75,000, whereas most other providers top out at $30K-$50K.
- Low prices– The rates are on the low end of the spectrum and very close to Mutual of Omaha and Globe Life.
- 10-pay option– At a higher premium, you can opt for the 10-pay option, which means you pay for the policy for ten years, and then it becomes “paid up.” After ten years, no additional premium is required, and the policy remains in force forever.
- No online application– Foresters Financial requires you to verbally speak with an agent who can assist you in buying this coverage in person or via email.
- Long telephone hold times– Calling the company can often take in excess of 20 minutes. Also, consumers report that their call menu is more burdensome than helpful.
Foresters Financial offers very competitive rates and some unique options that other companies don’t offer.
For example, they offer a 10-pay option in addition to the standard “life pay” option. If you choose the 10-pay option, your premiums will be higher, but you’ll only have to pay for ten years. After ten years, the policy becomes paid up, which means the coverage lasts forever and no longer requires any more premiums. Conversely, the life pay option is cheaper. However, you’ll make payments indefinitely (this is the default option with most companies).
Every Foresters child policy automatically includes three valuable riders at no extra cost:
- Guaranteed insurability: Guarantees that the children can buy more coverage as adults without qualifying medically.
- Common carrier: This doubles the death benefit payout if the child dies in a “common carrier” accident. A common carrier is a mass transit system like a bus or a train.
- Family health benefit: This rider can provide up to $650 per person (the insured or their family) per incident for various health events.
Lastly, there is a charity benefit that you can take advantage of at no extra cost. If you name a preferred charity (must be a 501(c)(3) organization), Foresters Financial will pay them an additional 1% of the death benefit.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).
S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).
Alternatives To Children’s Life Insurance
A juvenile life insurance policy is not the ideal financial vessel if your immediate goal is to pay for their college expenses, help them buy a home in the future, or address some other significant cost.
- 529 college savings plan: These are flexible accounts meant specifically for college expenses. The earnings grow tax deferred and can be used at any school in the nation.
- Custodial account: This is a special type of savings account managed by an adult (usually a parent or grandparent). The account holder decides what investment assets are utilized and when and how the money is used. The account typically transfers to the child once they reach 25 years of age.
- High-interest savings account: These savings accounts earn higher-than-average interest rates. According to Bankrate, the average savings account interest rate as of September 2025 is .61 %. However, a high-interest savings account can earn up to 10 times that or more.
Frequently Asked Questions
Children with specific health issues can still qualify for life insurance depending on the nature of their particular condition(s). In general, most congenital disabilities or mental development disorders, such as Down syndrome, will be declinable conditions. However, ongoing health conditions such as asthma or diabetes are insurable but may require a higher premium.
Children’s whole life insurance is generally the best type of policy because the coverage is guaranteed to last forever, and the premium cannot change for the rest of the child’s life. Also, it guarantees that the child can buy more coverage in adulthood. Although buying a term policy for your child is cheaper, it typically expires around their 25th birthday, leaving them without insurance.
Universal and whole life insurance for juveniles builds cash value over time. The policyholder can cash out this money anytime and use it for any purpose.
Some life insurance companies automatically change the policy owner once the child turns 18, but most do not. For example, the Gerber Grow Up Plan automatically makes the child the policy owner on their 21st birthday.
Conversely, Globe Life children’s insurance and Mutual of Omaha do not. Ownership can be changed with those companies (and most others), but only when the policy owner requests it.
An uncle or aunt can buy life insurance for their niece or nephew only if they have legal guardianship. Furthermore, all life insurance companies would require copies of the court papers to prove the guardianship.
Yes, legal guardians can buy life insurance for a child. It’s important to remember that you’ll be required to provide copies of the court documents showing the guardianship decree.
Generally, buying kids their own life insurance policy is better than insuring them via a rider attached to an adult’s policy. That’s true even though insuring kids via a rider results in a slightly lower premium. A standalone policy is superior because they have coverage that lasts their entire life with a fixed premium schedule. If you only insure them via a rider, once your policy ends, so does their coverage.
Also, a child rider frequently imposes low coverage limits on the children. In contrast, a standalone policy would enable you to insure them for much higher amounts. Finally, standalone policies offer the great benefit of guaranteed future insurability, promising them the ability to buy more coverage as adults. A children’s term life insurance rider does not come with a guaranteed insurability benefit.
Babies are eligible for life insurance. Generally, a baby must be at least 14 days old before a life insurance company will allow you to take out a policy on the child.
Globe Life and New York Life sell children’s life insurance to New York residents.
- Nationally licensed life insurance agent with over 15 years of experience
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
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children's term life insurance rider. https://www.investopedia.com/articles/pf/07/life_insurance_rider.asp#toc-6-child-term-rider
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cash value. https://www.allstate.com/resources/life-insurance/cash-value
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owes $37,090. https://www.bestcolleges.com/research/average-student-loan-debt/
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CDC. https://www.cdc.gov/nchs/fastats/child-health.htm
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529 college savings plan. https://www.fidelity.com/529-plans/overview
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Custodial account. https://www.jpmorgan.com/insights/wealth-planning/estate-planning/custodial-accounts
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High-interest savings account. https://www.nerdwallet.com/article/banking/high-interest-savings-account
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Globe Life. https://www.globelifeinsurance.com/childlifeinsurance
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New York Life. https://www.newyorklife.com/
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qualified investment advisor. https://www.finra.org/investors/investing/working-with-investment-professional/investment-advisers
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A.M. Best. https://news.ambest.com/pr/PressContent.aspx?refnum=35832&altsrc=2
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Moody's. https://www.mutualofomaha.com/about/financial-strength/ratings
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S&P Global. https://www.mutualofomaha.com/about/financial-strength/ratings
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consumeraffairs.com. https://www.consumeraffairs.com/
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A.M. Best. https://news.ambest.com/PR/PressContent.aspx?refnum=35243&altsrc=2
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S&P Global. https://home.globelifeinsurance.com/about/financial-strength-and-insurance-ratings
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A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?BL=0&ambnum=7299&AltNum=14937299&AltSrc=3
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A.M. Best. https://www.foresters.com/en/about-us/newsroom/news-releases/am-best
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According to Bankrate. https://www.bankrate.com/banking/savings/average-savings-interest-rates/
