Life Insurance for Children

Protecting your family means covering all of your bases.

The value of life insurance for parents is obvious, but many families don’t consider the importance of getting life insurance for children. In addition to covering yourself, life insurance coverage for your boys and girls stays with them through adulthood.

Find the best child term life insurance for your family.

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How does Child Life Insurance work?

For a very low cost, you can take out additional life insurance coverage for your kids. Should one of your children pass, you can then collect the life insurance payout in order to cover funeral plans, time spent away from work, medical bills, and other costs that inevitably arise from the death of a loved one.

How much does life insurance for children cost?

The cost of life insurance varies by provider and depends on whether you are purchasing an entirely separate plan for your children or purchasing an add-on to your own existing plan. However, child life insurance payments can be as low as £5 per month.

How much does child life insurance cover?

The amount of coverage included in your child life insurance policy is up to you. However, most providers do not offer the option for unlimited maximum coverage as they do for adult life insurance. Instead, the maximum child cover is usually capped at £25,000-£50,000, with a few providers offering a slightly higher maximum coverage.

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Life Insurance for Children and Adults Comparison

Unlike adult life insurance, which offers the option of lifetime coverage, life insurance for children only stays with kids until they reach a certain age, after which they are considered to be adults and must purchase their own life insurance policy. Some providers do offer the option to renew their child life insurance as an adult life insurance policy at a lower cost. Additionally, policies do not offer as much coverage as adult life insurance policies, because the passing of a child does not present the same kind of financial burden as the passing of an adult. Because of that, life insurance for children is cheaper than adults.

Difference Between Family and Child Life Insurance

Family life insurance covers the adults in your immediate family all under one policy. It does not automatically cover the kids, however. In order to make sure your boys and girls are covered, you would need to add a rider or additional child life insurance policy to your family life insurance.

Pros of Insurance for Children

  • An investment in your children’s future. Life insurance for children can be seen as an investment to be used by your children at a later date. As long as you don’t cash out the policy, it can continue to accrue value throughout their lifetime.
  • Coverage for your children in case chronic or critical illness arises. By covering your children now, you can secure a low cost life insurance policy for them that can carry into their adulthood. The price of their life insurance policy is locked in, even If they should develop an illness that would normally cause the cost of life insurance to increase greatly.
  • Cover costs associated with the loss of a loved one. Funeral costs are constantly increasing, and the death of a loved one can often leave families with medical bills and debt. The passing of a child is especially difficult, and many parents find that the bereavement leave offered by their employer is not enough. Having a life insurance plan for your children can help with all of these costs.

Cons of Insurance for Children

  • The loss of a child is less of a financial burden. Because children do not contribute to your household income, the loss of a child typically doesn’t present the same kind of financial burden that the loss of a parent does. For this reason, some families feel they do not need to purchase life insurance for their children.
  • Putting more money toward parent life insurance is a higher priority. Although child life insurance is very cheap, it is true that it is not as important as having good life insurance coverage for the parents and adults in the family. Because of this, some people prefer to take the money they would spend each month on life insurance for their kids and instead put it toward their own life insurance policy.

What is the maximum age my children can remain on a child life insurance policy?

This will vary depending on the provider, but it can be anywhere from 18 years old to 23 years old.

How do I make sure that my kids can renew their child term life insurance policy as adults?

When purchasing life insurance for your children, it’s important to make sure that the policy you’re purchasing is renewable. That way, once your kids are of age, they can renew the policy at a much lower cost than purchasing a new one. It’s also important to purchase a policy that is convertible into whole life insurance if you want your policy to be an investment for your kids.

What if my children become ill?

If you children develop an illness or disease, such as diabetes or heart attack, they can remain covered under the same child term life insurance policy.

What does child life insurance cover pay out?

As with all life insurance, the higher your monthly premium, the higher your payout. However, there are limits on the payouts. They tend to be around £25,000-50,000.

Is the Life Insurance for Children payout tax-free?

Yes, your child life insurance payout is not taxable.

Where can I get a Life Insurance for Children quote?

We offer instant quotes for all kinds of life insurance policies. Simply fill out our basic life insurance calculator form and get an estimate today.