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10 Best Teenager Life Insurance Companies In 2020

Have you been considering life insurance for teenager?

If so, this 2020 guide will answer all your questions and help you make the right choice.

We’ve outlined how teenager life plans work, the cost, the 10 best companies and much more.

What’s Covered In This Article

 

How Does Life Insurance For Teenagers Work?

A teenager life insurance policy is generally whole life insurance plan in the $10,000-$50,000 coverage range. It includes a behind the scenes savings account called “cash value” which grows with each monthly payment. The cash value can be used for college or other expenses.

Life insurance is a very broad term. There are literally dozens of different kinds of life insurance.

Fortunately, a whole life policy for a teenager is very simple and easy to understand. Here is the fine print you need to familiarize yourself with.

  • Fixed prices for life
  • Policy is guaranteed to never expire or cancel
  • Coverage is guaranteed to never decrease
  • Builds cash value that you can withdraw anytime

Regardless of the type, life insurance simply pays out a tax-free cash benefit to the beneficiary(s). There are never any rules or restrictions how life insurance proceeds are to be spent.

If the insured child were to pass away, all that would happen is a check would be cut by the insurance company for whatever amount of coverage you purchased.

You could use that money any way you see fit.

 

Teenager Life Insurance Rates

Premiums for a teenager life insurance plan typically range from $15.00-$20.00 per month depending on the child’s exact age, gender, issuing insurance company, coverage purchased and their health. Overall, $20,000 is the most common amount bought for a young adult.

AGE$10,000$20,000$30,000$50,000
0-4$4.00$7.00$10.00$16.00
5-9$4.80$8.60$12.40$20.00
10-14$5.50$10.00$14.50$23.50
15-17$6.90$12.80$18.70$30.50

 

Who Are The Best Life Insurance Companies For A Teenager?

The 10 companies below are among the best in the country offering life insurance to teenagers. We evaluated each one based on their financial stability, price for the coverage, riders included with the policy, application process, and customer service record.

  1. Mutual Of Omaha
  2. Gerber Life
  3. Globe Life
  4. Royal Neighbors Of America
  5. Foresters Financial
  6. Protective
  7. American Amicable
  8. Physicians Mutual
  9. Transamerica
  10. Liberty Banker’s Life

 

10 Best Whole Life Insurance Companies For Teenagers

Below you will see an exhaustive breakdown for each of the companies that make the cut. The first three shown are in order from best to worst, but the rest are in no particular order.

Please remember that not every one of these companies have their product available in every state.

 

Best of the Best #1: United of Omaha

  • Coverage Options: $5,000 – $50,000
  • Age Availability: 0 – 17
  • Unisex Rates: Yes
  • Policy Type: Whole Life

Mutual of Omaha (aka United of Omaha) comes in at number one for quite a few reasons.

They’re the least expensive on the market, offer a high amount of coverage, have the easiest online application, best in class financial history, gives you 90 days waiver of payments if the policy owner dies and allows you to manage your policy online.

Sample United of Omaha Premiums

AGE$10,000$20,000$30,000$50,000
0-4$4.00$7.00$10.00$16.00
5-9$4.80$8.60$12.40$20.00
10-14$5.50$10.00$14.50$23.50
15-17$6.90$12.80$18.70$30.50

 


 

Option #2: Gerber Life

  • Coverage Options: $10,000 – $50,000
  • Age Availability: 0 – 14
  • Unisex Rates: Yes (but not in FL or CA)
  • Policy Type: Whole Life

The Gerber Life Insurance Grow Up Plan is a great second choice if you already have coverage with United of Omaha.

They too offer a high amount of coverage and have a relatively simple online application process. Their coverage doubles when the child turns 18 and the premium stays the same.

That’s really good, but since the cost of children’s life insurance with Gerber is double with other carriers charge, you’re certainly paying for it.

Sample Gerber Life Premiums

AGE$10,000$20,000$40,000$50,000
1$6.79$13.58$26.08$32.60
5$7.68$15.36$29.61$37.01
10$9.05$18.10$34.80$43.50
14$10.38$20.77$39.97$49.97

 


 

Option #3: Globe Life

  • Coverage Options: $5,000 – $30,000
  • Age Availability: 0 – 24
  • Unisex Rates: Yes
  • Policy Type: Whole Life

The cost of Globe Life’s child coverage is very low. The main reason they didn’t rank higher though is because they have a poor customer service track record and they only allow you to buy up to $30K in coverage.

One big upside with Globe Life is they allow you to buy coverage on a child up to age 24. All other children’s life insurance companies max out at age 17 or less.

Sample Globe Life Premiums

Age$10,000$20,000$25,000$30,000
0-4$3.83$7.15$8.81$10.47
5-9$4.48$8.50$10.51$12.52
10-14$5.43$10.27$12.69$15.11
15-19$6.49$12.23$15.10$17.97

 


 

Option #4: Royal Neighbors of America

  • Coverage Options: $10,000 – $49,999
  • Age Availability: 0 – 17
  • Unisex Rates: No
  • Policy Type: Whole Life

Royal Neighbors is an old life insurance company (founded in 1900) that was the first company to offer life insurance to women and children.

Their prices are competitive with most other companies and they have excellent customer service.

The biggest downside with their teenager life insurance coverage is they require you to meet with an agent face to face in order to apply.

Royal Neighbors of America Premiums

AGE$10,000
Male
$10,000
Female
$20,000
Male
$20,000
Female
1$8.40$8.00$12.44$11.66
3$8.60$8.18$12.86$12.01
5$8.81$8.35$13.28$12.35
7$9.03$8.53$13.71$12.72

 


 

Option #5: Foresters Financial

  • Coverage Options: $5,000 – $75,000
  • Age Availability: 0 – 17
  • Unisex Rates: Yes (except FL)
  • Policy Type: Whole Life

The most unique aspect of Foresters Financial’s life insurance for teenagers is how much coverage they allow you to buy. Almost all other carriers max out at $50,000 or less, but Foresters goes up to $75,000.

They also have a strong financial history and are good about servicing their customers.

Foresters Financial Premiums

AGE$10,000$20,000$40,000$50,000
1$4.45$7.86$14.67$18.07
5$5.24$9.43$17.82$22.01
10$5.92$10.78$20.51$25.38
15$7.43$13.81$26.57$32.94

 


 

Option #6: Protective

  • Coverage Options: $10,000 – $20,000
  • Age Availability: 0 – 18
  • Unisex Rates: Yes
  • Policy Type: Whole Life

Protective Life isn’t the most well known company out there, but they have been business since 1907 and have strong financials.

The price of their coverage is similar to what a lot of other teenager life insurance companies charge. It’s just too bad they only allow you to buy up to $20K in coverage.

Protective Premiums

AGE$10,000$20,000$40,000$50,000
1$6.20$12.40$24.80$31.00
5$7.00$14.00$28.00$35.00
10$8.20$16.40$32.80$41.00

 


 

Option #7: American Amicable

  • Coverage Options: $10,000 – $35,000
  • Age Availability: 0 – 17
  • Unisex Rates: No
  • Policy Type: Whole Life

American Amicable will allow you to buy their coverage over the phone, but you will need to speak with agent. Fortunately, the process is fairly fast, so you won’t be on the phone too long.

Pricing for their coverage is in line with many other companies and they have an excellent customer service record.

American Amicable Premiums

AGE$10,000
Male
$10,000
Female
$20,000
Male
$20,000
Female
0-10$12.62$11.71$22.59$20.77
11$12.84$11.89$23.03$21.14
12$13.04$12.08$23.43$21.51
13$13.25$12.26$23.85$21.88

 


 

Option #8: Physicians Mutual

  • Coverage Options: $5,000 – $10,000
  • Age Availability: 0 – 12
  • Unisex Rates: Yes
  • Policy Type: Whole Life

Physicians Mutual has a pretty sleek online application process that is easy to use. You won’t need to speak with an agent.

The downside with them is they only allow you to buy either $5,000 or $10,000 and they only sell life insurance to teenagers up at age 12.

Physicians Mutual Premiums

AGE$5,000$10,000
1$2.95$5.90
4$3.40$6.80
8$3.85$7.70
12$4.45$8.90

 


 

Option #9: Transamerica

  • Coverage Options: $1,000 – $50,000
  • Age Availability: 0 – 17
  • Unisex Rates: No
  • Policy Type: Whole Life

Transamerica is a long standing insurance company with an extremely impressive financial track record. The downfall to their kids life insurance is they require you to speak with an agent.

They have no online application process. They are a good company, but they just need to work on their application process.

Transamerica Premiums

AGE$10,000
Male
$10,000
Female
$20,000
Male
$20,000
Female
1$15.96$14.31$28.31$25.01
3$16.16$14.47$28.71$25.34
5$16.35$14.65$25.70$29.09
7$16.89$14.98$30.17$26.35

 


 

Option #10: Liberty Bankers Life

  • Coverage Options: $10,000 – $30,000
  • Age Availability: 0 – 17
  • Unisex Rates: No
  • Policy Type: Whole Life

Pricing for their coverage is competitive relative to what other companies charge. Unfortunately, they have no online application process.

You are required to buy through an agent. Also, you must buy coverage that costs at least $15.00 per month.

Liberty Bankers Life Premiums

AGE$20,000
Male
$20,000
Female
$30,000
Male
$30,000
Female
1Price too lowPrice too low$17.33$15.31
3Price too lowPrice too low$18.03$15.95
5Price too lowPrice too low$18.64$16.56
7Price too lowPrice too low$19.47$17.45

 

5 Reasons To Buy Life Insurance On A Teenager

Very few financial experts agree on whether or not you should buy life insurance on a baby or teenager.

Truthfully, every individual must decide on their own if the reasons make sense and justify the cost. Some people conclude that it’s unnecessary or lacking in value, and some decide otherwise.

In the end, you must decide if you think insuring the life of a teenager is worth it or not.

Below are the five most common reasons people do choose to buy life insurance on a teenage girl or boy.

 

Savings for a college fund

Whole life insurance for children builds cash value. It is essentially a hidden savings account built into the policy.

Here is how that works. Every time you make a payment, a small portion gets redirected into this cash value account. In addition, this account earns interest.

As this account grows, the money built up can be accessed anytime to pay for college expenses or any other reason.

While it would be unwise to buy teenager life insurance coverage as the sole means to pay for college, it can help with those expenses.

 

Funeral expenses

Let’s face it; nobody even likes to talk about the death of a child. That said, this is a sad reality for some unfortunate families.

Albeit rare, children dying is real and the cost of their funeral is expensive too. On average, a traditional burial in the USA can cost nearly $10,000 according to parting.com.

Having life insurance on your teenager will ensure their untimely death wouldn’t impose a financial burden.

 

Time to grieve

When a child dies most parents are so devastated, they need time off work to heal from such a traumatic event.

A life insurance policy can ensure you can financially afford to take much needed time off work to grieve properly without having to worry about how you will pay your bills.

 

Lock in low rates

Life insurance for juveniles and teenagers is cheap because they are so young. Getting them coverage now locks in a life insurance plan that costs literally pennies per day.

This coverage will last their entire life and the rate is locked in so it will never increase.

 

Guaranteed future coverage

One of the best things about teenager’s life insurance is the guarantee they can buy more coverage later in life without having to qualify for it.

At certain life events (such as age or getting married), they can elect to buy more coverage without having to show evidence of insurability. No matter what their health or lifestyle is, they cannot be denied this additional coverage.

This is invaluable for adults that develop health issues later in life. Buying them coverage now guarantees they can get coverage later in life (multiples time too).

 

Who Is Allowed To Buy Coverage On A Child?

To buy life insurance on a teenager, you will must be related to the child in one of the following ways:

  • Parent
  • Legal guardian
  • Stepparent
  • Grandparent
  • Great grandparent

If you do not have one of those relationships to the child, you cannot buy coverage on them.

For example, an uncle cannot buy life insurance on his niece. It has to be one of those in that list.

 

How To Buy Teenager Life Insurance Online

Fortunately, most life insurance companies allow you to buy life insurance for teens 100% online.

Not all of them, but most do.


Quick Tip: If you use the quoting tool on this page, you will see instant teenager life insurance quotes from Mutual of Omaha. It will link to their online application where you can fully apply online in less than 2 minutes.


Here is a breakdown of how the online applications work.

First, you will need to gather some information about yourself and the teenagers you are looking to insure.

For the children, here is what you will need (you can insure multiple kids on one application):

  • Full name
  • Gender
  • DOB
  • Answers to a couple of general health questions (such as were they born with an illness or disorder)

You will be the policy owner since you’re buying the coverage. Here’s what information you must provide about yourself:

  • Full name
  • Mailing address
  • Relationship to the insured children
  • Gender
  • DOB
  • SSN
  • Phone number
  • Beneficiary names (if someone other than you)
  • Payment information (bank routing & account number)

Once you fill out all the information, you will be able to review the application to make sure everything is accurate. Then you sign the application electronically but clicking a button.

That will submit the application to the insurance company where they will process it within 1-2 days.

If the application is approved, you will get a paper policy in the mail within 1-2 weeks.