Chances are, you already have life insurance for yourself. But have you ever thought about buying life insurance for your kids?
At first, it might sound a little strange—maybe even a bit morbid. After all, no parent or grandparent wants to imagine the worst. Life insurance for children isn’t just about death benefits, however. It’s really about helping set them up for the future.
So why do families choose life insurance for kids? Here are seven smart reasons parents (and grandparents) consider it.
1. It locks in affordable premiums early.
One of the biggest advantages of buying life insurance for your child is that you can lock in coverage at the lowest possible rate.
Since kids are generally healthy, these policies are a fraction of what they would cost later in life. As long as premiums are paid, the policy stays in force, no matter how your child’s health may change down the road.
That means you’re not just buying protection today—you’re giving your child life insurance coverage that stays affordable for the rest of their life.
2. It guarantees future insurability.
Health can be unpredictable, and that’s one of the biggest reasons families choose child life insurance.
When you buy life insurance for your child or grandchild, you’re locking in coverage that can’t be taken away—even if a future medical exam would reveal health issues that could otherwise make them uninsurable.
Having this protection in place gives you peace of mind today, and it gives your child confidence knowing they’ll always have life insurance coverage, no matter what life brings.
3. Policy options are flexible.
When you buy life insurance for kids, you’re not locked into a one-size-fits-all plan. Parents and grandparents can choose between term life insurance and permanent life insurance, though most policies for children are permanent. Permanent coverage lasts for life as long as premiums are paid and can build cash value, while term life insurance is more limited but may suit certain needs.
With guidance from experienced life insurance companies, you can select the option that best fits your family’s goals and budget, giving you confidence that the coverage will grow along with your child.
4. It builds cash value for the future.
Most life insurance policies for kids are permanent life insurance, which (unlike term life insurance) doesn’t expire as long as premiums are paid.
Over time, these policies also accumulate cash value. That money grows tax-deferred and can eventually be borrowed against or used for big milestones like college tuition, a first home, or even starting a business.
In this way, life insurance works as both protection and a savings tool, helping your child or grandchild get a financial head start in life.
5. It provides a safety net through death benefits.
It’s difficult to think about, but one of the basic purposes of life insurance is the death benefit. If the unthinkable happens, having insurance for a child can ease the financial strain during a very painful time.
These funds can help cover medical bills, funeral costs, or simply give parents time off work to grieve and heal. While no amount of money can replace a child, having life insurance in place provides a cushion that can relieve some of the financial stress and allow families to focus on what matters most.
6. It teaches financial responsibility early.
Life insurance for kids can also be a teaching tool. When the time comes, you can show your child or grandchild how life insurance works and why it’s important to think about long-term financial security.
A permanent policy is more than just coverage for a child—it’s an example of how steady premium payments and smart planning can build cash value over time. By including them in the conversation as they grow, you’re not just giving them a policy—you’re helping them learn the value of responsibility and planning ahead.
7. It offers peace of mind for the whole family.
At the end of the day, parents and grandparents don’t buy life insurance for kids just for the financial benefits—it’s about peace of mind.
Knowing that your child or grandchild has lifelong coverage, guaranteed insurability, and even the ability to build cash value offers reassurance that you’re doing everything you can to protect their future.
It’s a simple way to provide security and show your family that you’re planning ahead for whatever life may bring.
Give Your Child the Gift of a Secure Future
When it comes to your kids, life insurance may not be the first thing on your mind, but as you can see, it offers more than just death benefits. From locking in affordable premiums and guaranteeing lifelong coverage to building cash value and providing peace of mind, child life insurance is a simple yet powerful way to plan ahead.
If you’re ready to explore coverage for your child or grandchild, Darr Schackow Insurance is here to help. Our team works with top life insurance companies to find policies that fit your family’s goals and budget. We’ll walk you through how life insurance works, answer your questions, and help you buy life insurance that truly sets your loved ones up for success.
Start planning today and give your family the security they deserve.