How Does Life Insurance For Children Work?
Life insurance for children is coverage that insures a minor’s life. While the policy is in force, the insurer would pay the death benefit to the beneficiary if the child were to die.
Most commonly, life insurance for children is either a whole life policy or a universal life policy, both of which are types of permanent life insurance. However, some companies offer children’s term life insurance policies, though it’s very rare.
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 At any point in the child’s life, the equity accumulated in the cash value account can be withdrawn by the policyholder for college expenses, debts, or other purposes.
When you buy life insurance for children, you’re the policy ownerPolicy owner
The policy owner is the person or entity who controls a life insurance policy. Additionally, they are the owner of any cash value. Only the policy owner can make inquiries or changes to the policy or access the cash value., meaning you’re in full control of it. When the child becomes an adult, you can elect to transfer ownership to them (some companies, such as Gerber Life, automatically transfer ownership once the child turns 18).
You can still continue paying for the policy, or the adult child can. Either way, once they become the owner, you will no longer have access to the policy, nor will you be able to make changes to it. Furthermore, the accumulated cash value would be owned by the child, and only they could access it going forward.
When Buying Life Insurance For A Child Is A Good Idea
There are many positive benefits of buying life insurance for children, such as:
- Secures a permanent, lifelong policy for them at a very low price, usually guaranteed never to 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 parents 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).
- Builds cash value that can be used when the children become adults for expenses such as college, a car, or other needs.
When Is Buying Children’s Life Insurance Not A Good Idea
You should not buy life insurance for children if your sole goal is to provide them with money as an adult.
The primary reason is that the cash value that accumulates in a whole life or universal life policy will be substantially less than what actual investment products would produce.
If you simply want to provide your child or grandchild with money when they become an adult, you should consider traditional investment products such as mutual funds, stocks, or bonds.
It’s best to 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?
Children’s life insurance quotes 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.
| Age | $10,000 | $25,000 | $40,000 | $50,000 |
|---|---|---|---|---|
| 0-4 | $5 | $10 | $15 | $19 |
| 5-9 | $5 | $12 | $19 | $23 |
| 10-14 | $6 | $14 | $22 | $27 |
| 15-17 | $8 | $18 | $28 | $35 |
| Source for monthly prices: Choice Mutual child life insurance calculator. Rates are unisex, rounded to the nearest dollar, and valid as of 08/04/2026. | ||||
Pros And Cons Of Buying Life Insurance For Children
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 personal preference due to 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 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 $40,467 in federal student loan debt. 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 levels of coverage ($500,000+) to replace their income or pay off large debts, such as a mortgage. Buying ≤ $100,000 in life insurance for a child will do little to cover their adult life insurance needs.
- 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 went into the cash-value account (it’s closer to 50%), it would still amass only a few thousand dollars at best. If your sole objective is to save money for a child, other financial products are 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%).
Who Can Buy Life Insurance For Children?
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 income requirement | No | Yes |
| Parents have sufficient life insurance of their own | No | Yes |
Best Children’s Life Insurance Companies
Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:
| Factor | Score Value |
| Price of Coverage |  40% |
| Financial Strength |  15% |
| Policy Features | 15% |
| NAIC Complaint Index | 15% |
| Customer Support Hold TimeService Hold Time | 15% |
| Overall Maximum | 100% |
Our ratings are tested with scoring model 1.2, a review formula that ensures consistency and accuracy in our assessments.
Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:
Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:
The policy features score is a cumulative assessment of various policy details. To develop this score, we answer 6 objective questions and assign a pass or fail result, which corresponds to the following scores:
The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:
The customer support hold time score is based on the average amount of time it takes a company to connect an existing policyholder to a human customer service agent. This is measured by an AI automated system that calls each company five times per month according to a defined schedule.
We average the hold times of calls made over the last three months to determine the score:
- 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 apply fully online without speaking 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, cost-free complimentary riders, and ease of doing business with them.
The guaranteed insurability rider allows the insured children to buy five times more coverage (as adults). The additional life insurance is a guaranteed issue, meaning it 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 8 children in a single application rather than creating a separate application for each child.
We obtain these phone hold times using an automated AI system that calls the company’s customer service number each weekday during the first full week of the month.
The system calls at regular intervals from the time the company’s phone line opens: Monday, 15 minutes after opening; Tuesday, 1 hour after opening; Wednesday, 4 hours after opening; Thursday, 4 hours after opening; Friday, 6 hours after opening. The system remains on hold for up to 30 minutes, after which time the call is marked “No answer.” The call is marked “Voicemail” if it is routed to an answering machine.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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).
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:
| Factor | Score Value |
| Price of Coverage | 40% |
| Financial Strength | 15% |
| Policy Features | 15% |
| NAIC Complaint Index | 15% |
| Customer Support Hold TimeService Hold Time | 15% |
| Overall Maximum | 100% |
Our ratings are tested with scoring model 1.2, a review formula that ensures consistency and accuracy in our assessments.
Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:
Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:
The policy features score is a cumulative assessment of various policy details. To develop this score, we answer 6 objective questions and assign a pass or fail result, which corresponds to the following scores:
The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:
The customer support hold time score is based on the average amount of time it takes a company to connect an existing policyholder to a human customer service agent. This is measured by an AI automated system that calls each company five times per month according to a defined schedule.
We average the hold times of calls made over the last three months to determine the score:
- 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, such as the Better Business Bureau and consumeraffairs.com, report numerous complaints.
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 Life guarantees that insured children have the right to purchase additional coverage as adults without having to meet any qualifications.
Globe Life offers multiple payment options, including credit card, bank draft, and mail payments.
We obtain these phone hold times using an automated AI system that calls the company’s customer service number each weekday during the first full week of the month.
The system calls at regular intervals from the time the company’s phone line opens: Monday, 15 minutes after opening; Tuesday, 1 hour after opening; Wednesday, 4 hours after opening; Thursday, 4 hours after opening; Friday, 6 hours after opening. The system remains on hold for up to 30 minutes, after which time the call is marked “No answer.” The call is marked “Voicemail” if it is routed to an answering machine.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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).
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:
| Factor | Score Value |
| Price of Coverage | 40% |
| Financial Strength | 15% |
| Policy Features | 15% |
| NAIC Complaint Index | 15% |
| Customer Support Hold TimeService Hold Time | 15% |
| Overall Maximum | 100% |
Our ratings are tested with scoring model 1.2, a review formula that ensures consistency and accuracy in our assessments.
Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:
Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:
The policy features score is a cumulative assessment of various policy details. To develop this score, we answer 6 objective questions and assign a pass or fail result, which corresponds to the following scores:
The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:
The customer support hold time score is based on the average amount of time it takes a company to connect an existing policyholder to a human customer service agent. This is measured by an AI automated system that calls each company five times per month according to a defined schedule.
We average the hold times of calls made over the last three months to determine the score:
- 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 by credit card, automatic bank draft, or 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 those of companies like Mutual of Omaha and Globe Life.
- Ownership automatically changes at 21: When the children 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 policy’s coverage amount when the child turns 18, and the price remains the same.
Another great benefit of working with Gerber Life is that it accepts 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 coverage to applicants with ongoing health conditions.
There is a guaranteed insurability rider that allows the children to purchase additional coverage as adults. The additional coverage is guaranteed, meaning they cannot be denied for any health or lifestyle reasons.
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.
We obtain these phone hold times using an automated AI system that calls the company’s customer service number each weekday during the first full week of the month.
The system calls at regular intervals from the time the company’s phone line opens: Monday, 15 minutes after opening; Tuesday, 1 hour after opening; Wednesday, 4 hours after opening; Thursday, 4 hours after opening; Friday, 6 hours after opening. The system remains on hold for up to 30 minutes, after which time the call is marked “No answer.” The call is marked “Voicemail” if it is routed to an answering machine.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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).
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:
| Factor | Score Value |
| Price of Coverage | 40% |
| Financial Strength | 15% |
| Policy Features | 15% |
| NAIC Complaint Index | 15% |
| Customer Support Hold TimeService Hold Time | 15% |
| Overall Maximum | 100% |
Our ratings are tested with scoring model 1.2, a review formula that ensures consistency and accuracy in our assessments.
Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:
Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:
The policy features score is a cumulative assessment of various policy details. To develop this score, we answer 6 objective questions and assign a pass or fail result, which corresponds to the following scores:
The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:
The customer support hold time score is based on the average amount of time it takes a company to connect an existing policyholder to a human customer service agent. This is measured by an AI automated system that calls each company five times per month according to a defined schedule.
We average the hold times of calls made over the last three months to determine the score:
- 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 are very close to those of 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 more than 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 further premiums are due. Conversely, the life pay option is cheaper. However, you’ll make payments indefinitely (this is the default option with most companies).
Every child policy automatically includes three valuable riders at no extra cost:
- Guaranteed insurability: Guarantees that children can purchase additional coverage as adults without medical underwriting.
- 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.
We obtain these phone hold times using an automated AI system that calls the company’s customer service number each weekday during the first full week of the month.
The system calls at regular intervals from the time the company’s phone line opens: Monday, 15 minutes after opening; Tuesday, 1 hour after opening; Wednesday, 4 hours after opening; Thursday, 4 hours after opening; Friday, 6 hours after opening. The system remains on hold for up to 30 minutes, after which time the call is marked “No answer.” The call is marked “Voicemail” if it is routed to an answering machine.
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
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).
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
Buying Large Coverage Amounts Of Life Insurance For Children
If you want to buy more than $100,000 of life insurance for a child, you will have to meet additional requirements such as:
- Must speak with an agent: There is no way to purchase large amounts of coverage for a child online or by mail. You will have to speak with a licensed agent.
- Answer multiple health questions: Most life insurance policies for children under $100,000 only require you to answer 3-5 health questions. For large policies, expect to answer 15-30 health questions.
- The child’s medical records: The insurance company will subpoena all of the child’s medical records from all physicians the child has ever seen.
- Cover letter: For amounts over $250,000, most insurers will require you to provide a cover letter explaining the rationale of the need for such a large death benefit.
- Sufficient life insurance for the parents: The parents must have sufficient life insurance on themselves. An insurer will not allow you to buy $500,000 of coverage on a child when the parent has the same amount or less on themself. The general rule insurers follow is that a child’s coverage cannot exceed 50 percent of the parents’ coverage amount. For example, if the parent has only $250,000 in coverage on themselves, the insurer would allow them to buy at most $125,000 in coverage for their child.
- Sufficient household income and net worth: The parents must have sufficient annual income and net worth to justify high coverage for a child. These limits vary by insurer, but you’ll generally need to be in the top 10% of income earners to qualify for larger face amounts for a child.
- Siblings must be equally covered: Insurers will require you to have a comparable amount of coverage on all of your children. For example, if you only have $25,000 of coverage on one child, but all of a sudden want $500,000 for one of your other children, the insurer will object. They want all of your children to be similarly insured; otherwise, it raises serious suspicions about why you would want a large amount of coverage on only some of your children.
Failure to meet 100% of these requirements will result in denial of the application.
Also, keep in mind that at the absolute top end, insurers will not allow anyone to buy more than $1 million in life insurance for a child. In fact, most insurers have a maximum coverage for a child in the range of $250K-$500K.
Alternatives To Children’s Life Insurance
A children’s life insurance policy is not the ideal financial vehicle 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.
If any of those are your objective, consider these options instead:
- 529 college savings plan: A flexible account designed 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, 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 August 2026 is .62 %. 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 usually comes with a guarantee that the child can buy more coverage in adulthood. Term life insurance for children is incredibly rare. It would certainly be less expensive than a permanent policy, but it would likely expire around their 25th birthday.
Universal and whole life insurance for children builds cash value over time. The policyholder can cash out this money at any time and use it for any purpose.
Some life insurance companies automatically change the policy owner once the child becomes an adult, 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 upon the policy owner’s request.
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 often sets low coverage limits for 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.
Our Insurance Review Methodology
Below is an outline of how we chose the best final expense insurance companies, along with an overview of our insurance review methodology.
How we chose the best companies
To select the best burial insurance companies for 2026, we evaluated over 25 providers- both our partner companies and competitors with whom we have no business connection.
We chose the top companies based on the following factors:
- Price: 40% – We compared all companies’ rates side by side using the Choice Mutual quote calculator. We designated price as the most significant factor, since most burial insurance customers are seniors with limited, fixed incomes.
- If no waiting period coverage is available: 20% – We leaned towards providers that offer policies that fully insure you from day one for both natural and accidental death.
- Financial strength: 5% – We checked each insurer’s financial strength rating from A.M. Best. We only considered companies that have at least an A rating.
- NAIC complaints: 10% – We reviewed each insurer’s complaint ratio as reported by the National Association of Insurance Commissioners.
- Customer phone support: 10% – We built an AI-powered automated calling system to evaluate how long it takes a company to answer the phone. Servicing policyholders is critically important. Companies that take a long time to answer the phone were demoted in their ranking.
- Consumer insights: 10% – We analyzed the insurance company’s ranking from JD Power’s life insurance survey and online customer feedback on websites such as Google, Trustpilot, and the Better Business Bureau.
- Unique value: 5% – Each of the top companies has a badge indicating what they are best at, highlighting how they offer unique value (if any) compared to other providers. Companies that offered no special value were excluded from consideration.
The top providers appear on this page in order from the highest to the lowest overall score. The overall score is a proprietary metric that Choice Mutual uses to assess the overall value of a given product or company. Our scoring system is fully explained below.
Our review formula explained
Every company we review has an overall score that illustrates how well it stands out in the market relative to its competitors. These scores are not subjective. Instead, we utilize a defined 5-star scoring system that applies a weighted average of particular factors, all of which are outlined below and on our review methodology page.
Coverage
Strength
Complaint Index
Hold Time
We measure the price of a company’s most popular policy relative to its competitors’. The closeness of their cost to other companies determines the final score. Read a full breakdown of the price of coverage factor on our review methodology page.
Coverage
Coverage
Strength
Complaint Index
Hold Time
This factor assesses whether a company offers immediate coverage and, if so, how difficult it is to qualify for it. Read a full breakdown of the no waiting period coverage factor on our review methodology page.
Strength
Coverage
Strength
Complaint Index
Hold Time
A company’s financial strength is based on its rating with A.M. Best. Read a full breakdown of the financial strength factor on our review methodology page.
Complaint Index
Coverage
Strength
Complaint Index
Hold Time
The National Association of Insurance Commissioners’ complaint index measures an insurer’s frequency of consumer complaints compared to the rest of the market. The score the insurer receives is based on how it stacks up to the median score of other insurers. Read a full breakdown of the NAIC complaint index factor on our review methodology page.
Hold Time
Coverage
Strength
Complaint Index
Hold Time
The customer support hold time score is based on the average amount of time it takes a company to connect an existing policyholder to a human customer service agent. Read a full breakdown of the customer support hold time factor in our review methodology page.
Why trust Choice Mutual?
When we review products, our findings are unbiased and free of any influence from partnerships or methods of compensation. All findings, good or bad, are solely the derivative of our objective analysis of any given product or company.
As noted on our review methodology page, our researchers evaluate the financial stability of the insurer, policy costs, product limitations, state availability, customer satisfaction, waiting periods (if applicable), and other relevant factors. We aggregate all this cumulative data to develop objective overall scores based on predefined weighted factors.
In addition, a qualified expert who is well-qualified to speak on the matter will provide opinion-based feedback about the company or product being reviewed.
For over a decade, Choice Mutual has been an insurance agency specializing in final expense life insurance. Our expertise in this type of insurance is well documented in numerous authoritative publications, some of which are listed below:
Choice Mutual’s mission is to provide consumers with unbiased, expert commentary and explanations of the topics under discussion. We want our readers to be armed with information and tools not found anywhere else on the internet, so they can make an informed decision.
All content on this website is written by Anthony Martin, a licensed life insurance agent with over a decade of industry expertise, who has been quoted hundreds of times as an expert source by reputable news outlets.
Per our editorial guidelines, we have never used and will never use artificial intelligence to create our content. Every word printed on this website is produced and curated entirely by human beings who have firsthand experience with the subject matter.
- Nationally licensed life insurance agent with over 16 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 16 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 20 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 20 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 15 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 15 years of experience. He has personally helped more than 1,500 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 20 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 20 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 15 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 15 years of experience. He has personally helped more than 1,500 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.
-
children's term life insurance rider. https://www.investopedia.com/articles/pf/07/life_insurance_rider.asp#toc-6-child-term-rider
-
cash value. https://www.allstate.com/resources/life-insurance/cash-value
-
CDC. https://www.cdc.gov/nchs/fastats/child-health.htm
-
529 college savings plan. https://www.fidelity.com/529-plans/overview
-
Custodial account. https://www.jpmorgan.com/insights/wealth-planning/estate-planning/custodial-accounts
-
High-interest savings account. https://www.nerdwallet.com/article/banking/high-interest-savings-account
-
Globe Life. https://www.globelifeinsurance.com/childlifeinsurance
-
New York Life. https://www.newyorklife.com/
-
qualified investment advisor. https://www.finra.org/investors/investing/working-with-investment-professional/investment-advisers
-
A.M. Best. https://www.foresters.com/en/about-us/newsroom/news-releases/am-best
-
According to Bankrate. https://www.bankrate.com/banking/savings/average-savings-interest-rates/
-
NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=69868&REALM=PROD&COCODE=69868&REALM=PROD
-
A.M. Best. https://news.ambest.com/PR/PressContent.aspx?refnum=35243&altsrc=2
-
NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=91472&REALM=PROD&COCODE=91472&REALM=PROD
-
A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?BL=0&ambnum=7299&AltNum=14937299&AltSrc=3
-
NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=70939&REALM=PROD&COCODE=70939&REALM=PROD
-
NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=58068&REALM=PROD&COCODE=58068&REALM=PROD
-
Better Business Bureau. https://www.bbb.org/us/ne/omaha/profile/insurance-companies/mutual-of-omaha-0714-104000434
-
BBB. https://www.bbb.org/us/ne/omaha/profile/insurance-companies/mutual-of-omaha-0714-104000434
-
Better Business Bureau. https://www.bbb.org/us/tx/mc-kinney/profile/insurance-companies/globe-life-inc-0875-2425
-
BBB. https://www.bbb.org/us/tx/mc-kinney/profile/insurance-companies/globe-life-inc-0875-2425
-
Better Business Bureau. https://www.bbb.org/us/mi/fremont/profile/life-insurance/gerber-life-insurance-company-0372-15002380
-
BBB. https://www.bbb.org/us/mi/fremont/profile/life-insurance/gerber-life-insurance-company-0372-15002380
-
Better Business Bureau. https://www.bbb.org/ca/on/north-york/profile/insurance-companies/foresters-financial-0107-1166355
-
BBB. https://www.bbb.org/ca/on/north-york/profile/insurance-companies/foresters-financial-0107-1166355
-
Trustpilot. https://www.trustpilot.com/review/mutualofomaha.com
-
Google. https://www.google.com/maps/place/United+of+Omaha+Life+Insurance+Co./@41.2919772,-96.3930632,11z/data=!4m10!1m2!2m1!1sMutual+of+Omaha!3m6!1s0x87938faddb631741:0x1c63fb3068a9098d!8m2!3d41.2585725!4d-95.9622597!15sCg9NdXR1YWwgb2YgT21haGEiA4gBAZIBEGluc3VyYW5jZV9hZ2VuY3ngAQA!16s%2Fg%2F1hc7zdp8w?entry=ttu
-
Yelp. https://www.yelp.com/biz/mutual-of-omaha-omaha-6
-
Trustpilot. https://www.trustpilot.com/review/globelifeinsurance.com
-
Google. https://www.google.com/search?client=firefox-b-1-d&q=globe+life+mckinney+texas+google#lrd=0x864c15e097e61a35:0xf574b4d6237060dd,1,,,,
-
Yelp. https://www.yelp.com/biz/globe-life-and-accident-insurance-company-mc-kinney
-
Trustpilot. https://www.trustpilot.com/review/www.gerberlife.com
-
Google. https://www.google.com/maps/place/Gerber+Life+Insurance+Company/@39.5600093,-89.7140572,5z/data=!4m10!1m2!2m1!1sgerber+life+insurance+company+reviews+on+google!3m6!1s0x89c29159fd7cddd7:0xddb42c90d8523fdf!8m2!3d40.9862896!4d-73.7425592!15sCi9nZXJiZXIgbGlmZSBpbnN1cmFuY2UgY29tcGFueSByZXZpZXdzIG9uIGdvb2dsZSIFOAGIAQGSARVsaWZlX2luc3VyYW5jZV9hZ2VuY3mqAZkBCg0vZy8xMWg2eXJ6ajZtCgkvbS8wMjF3eTQKCC9tLzAzeGtzCgovbS8wNGN4ZzljEAEqISIdZ2VyYmVyIGxpZmUgaW5zdXJhbmNlIGNvbXBhbnkoADIfEAEiGwHku0YiS2xniuNSK5WxBx86KtjfgQKIwaFOeDIhEAIiHWdlcmJlciBsaWZlIGluc3VyYW5jZSBjb21wYW554AEA!16s%2Fg%2F124ykpqcc?entry=ttu&g_ep=EgoyMDI1MTEwNC4xIKXMDSoASAFQAw%3D%3D
-
Yelp. https://www.yelp.com/biz/gerber-life-insurance-company-fremont
-
Trustpilot. https://www.trustpilot.com/review/foresters.com
-
Google. https://www.google.com/search?sca_esv=0fc7dd398656b67a&q=Foresters+Financial&ludocid=7146882542483816898&lsig=AB86z5XUqFWC1_T7PanBwIBI_Unf&sa=X&ved=2ahUKEwjgjpSOs76LAxVsIEQIHa5kHfMQoAJ6BAgNECg&biw=1920&bih=911&dpr=1#lrd=0x89d4d36fcd0bfe4d:0x632ed3ce7c3041c2,1,,,,
-
A.M. Best. https://news.ambest.com/pr/PressContent.aspx?refnum=37185&altsrc=2
-
owes $40,467. https://educationdata.org/student-loan-debt-statistics
-
consumeraffairs.com. https://www.consumeraffairs.com/insurance/globe-life-insurance.html
-
top 10% of income earners. https://www.investopedia.com/personal-finance/how-much-income-puts-you-top-1-5-10/#toc-annual-incomes-of-top-earners
