Purchasing life insurance for a child isn't just about covering financial needs if something happens to them. For many parents, grandparents, and guardians, it's about making sure that they'll be able to get coverage when they're adults.
A permanent life insurance policy for a child can also lock in low premiums and even earn cash value over time that can be borrowed against or withdrawn later.
We've reviewed many major insurance carriers that offer policies for children and selected the best in several categories. (See our methodology to see how we made our choices.)
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Best for a standalone policy: Mutual of Omaha
Who's this for? If you want a standalone policy for your child or grandchild, Mutual of Omaha's children's whole life insurance offers generous coverage of up to $50,000 and requires only a few health questions.
Standout benefits: As the child grows up, Mutual of Omaha allows them to continue coverage by buying more at specific birthdays — 25, 30, 35 and 40 — and life events, including marriage, the birth of a child or a home purchase.
Mutual of Omaha Children's Whole Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
No
Policy highlights
Mutual of Omaha offers children's whole life insurance policies with as few as three health questions and up to $50,000 of coverage. Its whole life insurance policies for children offer the opportunity to add more coverage at certain milestones later in life.
Pros
- Quotes and applications are available online
Cons
- Does not offer term life insurance for children
- Coverage limits and availability varies by state
Best term life insurance: Aflac
Who's this for? Aflac is one of the few companies that offers term life insurance for children, with affordable coverage available until age 25.
Standout benefits: Both Aflac's juvenile term and whole life policies guarantee your child the ability to stay covered in the future by continuing their coverage.
Aflac Juvenile Life insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Aflac offers term and whole life insurance for children between 14 days old and 17 years old. With both types of coverage, the child is able to convert the policy to a permanent life insurance policy with up to double the coverage.
Pros
- Offers term life insurance for children
- Coverage will ensure future insurability
Cons
- Coverage limited to $30,000 for children's life insurance
Best for high coverage limits: American Family
Who's this for? American Family's DreamSecure children's whole life plan offers coverage limits of up to $75,000, higher than many competitors' limits.
Standout benefits: The guaranteed purchase benefit allows you to increase coverage at certain milestones without requiring a medical exam.
American Family DreamSecure Children's Whole Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
No
Policy highlights
American Family offers high coverage limits on children's whole life insurance policies that can be paid in 10 or 20 years. Policies can grow with children as they hit certain life milestones like marriage or buying a home.
Pros
- High coverage limits starting at $25,000
- Quotes are available online
Cons
- Not available in all states
Best for babies: Gerber Life Grow Up® Plan
Who's this for? If you've recently welcomed a child into the family, the Gerber Life grow up® plan offers affordable rates for children as young as 14 days old. Premiums for children under 1 start at $3.70 a month with $5,000 worth of coverage.
Standout benefits: Grow up plan coverage automatically doubles at 18, giving your child more protection as they grow.
Gerber Life Grow Up® Plan
Cost
The best way to estimate your costs is to request a quote
App available?
Yes
Standout features
This whole life insurance policy can build cash value and the death benefit will double when the child reaches age 18. Coverage is available up to $50,000 and can last a lifetime as long as premiums are paid. These policies can also guarantee that the child will be able to buy more coverage in the future, regardless of health or occupation.
Pros
- Coverage doubles at age 18
- Guarantees insurability in adulthood, helping them buy more coverage regardless of health conditions
- Can be purchased by parents, guardians or grandparents
- 10% discount with autopay
Cons
- Few options for riders or customization on policies
- Not available for children ages 14 and older
Best for whole life coverage: Foresters Financial
Who's this for? Foresters Financial offers a no-exam whole life policy that is payable for either 10 years or up to age 100 — the former option enables you to pay their lifetime premiums in full in just a decade.
Standout benefits: Foresters offers several riders at no additional charge, including an accelerated death benefit rider that can help after a terminal illness diagnosis.
Foresters Financial BrightFuture Children's Whole Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
BrightFuture Whole Life Insurance is designed for children up to age 18 and offers two choices for payments. Its children's policy has several included riders and features that could be useful, including coverage for health expenses after a natural disaster and accelerated benefits.
Pros
- Premiums are able to be paid in a 10-year period or up to age 100.
Cons
- Quotes not available online
- Not available in all states
Best for children's term rider: State Farm
Who's this for? A children's term rider is much more affordable than a standalone policy, and State Farm's rider covers kids as young as 15 days old with up to $20,000 in coverage. The benefit remains in effect until the child turns 25 or you turn 65.
Standout benefit: State Farm's rider can be converted into an individual whole-life policy when the child reaches 25.
- Reasonable rates
- Top-rated for customer service
- Return of premium benefit available
- Term policies can be converted to permanent
- Policies must be purchased through a State Farm agent
- Doesn't sell policies in Rhode Island or Massachusetts
- Fewer riders than the competition
- Accelerated death benefit costs extra
What is children's life insurance?
Children's life insurance works like an adult policy: If the covered individual passes away, the listed beneficiaries receive a payout.
Typically, children's policies are small whole-life plans with death benefits ranging from $5,000 to $50,000, though some companies offer higher limits. Many children's life insurance policies cover infants as young as 14 days old and end at age 17, though some are capped at a lower age.
One of the big benefits of children's life insurance, however, is what happens when they're older. Once a child reaches a certain age (typically 21), they'll automatically be able to take over the policy as their own whole life insurance policy.
They'll also be able to purchase additional coverage at certain milestones, such as when they get married or buy a house.
Should I buy life insurance for my child or grandchild?
Most people think of life insurance as protecting their loved ones if they die and can't provide for them financially. But people buy life insurance for children for a variety of reasons.
Covers final expenses: If the child died, a policy could cover the funeral, medical bills and other expenses. Some policies have accelerated death benefits that would allow you to access funds if the child was diagnosed with a serious or terminal illness.
Ensures coverage later: A life insurance policy for a child can guarantee coverage when they're older. That can be helpful if the child develops disabilities, has health issues or starts a risky occupation. All the companies we chose allow children to assume control of the policy at adulthood and add coverage at certain milestones.
Builds a nest egg: Since whole life policies can accumulate cash value, a child's life insurance can start them off with financial security.
However, getting life insurance is not the only way to give the children in your life a head start. It's also possible to set them up for success with custodial accounts or 529 college savings plans.
How to get life insurance for a child
Only parents, grandparents or guardians can buy life insurance for a child, and the process is relatively simple.
Wait until the child is two weeks old: Most of the life insurance companies we reviewed require children to be 14 or 15 days old before they can be covered.
Provide basic information: While the companies we chose don't require a medical exam, you'll need to provide a few details about their health status, as well as their birth date, address, and information about their parents.
Choose coverage and limits: Decide whether to enroll the child in a whole life or term life insurance policy or add them to your policy with a rider. Then, you'll decide how much coverage to buy.
Get a quote: Many insurers offer quotes online or by phone. Compare rates among several companies to find the right fit.
Buy the policy: Coverage begins after your first payment.
Types of life insurance for children: What's the difference?
There are two ways to get coverage for a child:
- A standalone life insurance policy: A whole life policy will stay in force as long as premiums are paid and the policy has a cash value component that can be accessed while the child is alive. A standalone child term life insurance policy expires after a certain number of years.
- A child rider: Parents can affordably add all of their kids to their policy with a term life rider. Coverage will expire after a certain number of years, but some companies allow you to convert a term rider into permanent coverage when the child reaches adulthood.
| Standalone policy | Rider on a parent's policy | |
|---|---|---|
| Coverage type | Permanent or term coverage | Typically term |
| Parent covered? | No | Yes |
| Able to be carried into adulthood? | Yes | In some cases |
| Flexibility | May include riders to customize policy | None |
| Annual cost for a 1-year-old with $25,000 of coverage | About $220 | About $150 |
Source: Rate information from Policygenius
Pros and cons of buying life insurance for a child
- Death benefits can cover the cost of a funeral, as well as medical and legal bills.
- Whole life policies earn cash value that the child can withdraw or borrow against later.
- A policy for a child can extend into adulthood, with the option to increase coverage at certain life milestones without an extensive underwriting process.
- Not all providers offer life insurance for children.
- Many policies cap coverage at $50,000 or $75,000.
- Policies don't build cash value quickly, making them less effective investments for paying for college or other goals.
FAQs
Can you get life insurance for a child?
Parents, grandparents or guardians can buy life insurance for a child. These plans are typically small whole-life policies that pay out less than $50,000 and can be converted into adult policies after age 21. A child can also be added to a rider on a parent's life insurance policy.
What type of life insurance is best for a child?
A whole life insurance policy is a better option for a child, since it comes with fixed premiums, no medical exam and the option to build cash value and add more coverage later. While you can buy term life insurance for a child, if they outlive the term, no benefit is issued. In addition, a term life policy won't earn any cash value.
Is there an age limit for children's life insurance?
Most of the companies we reviewed allow adults to purchase life insurance for children from birth (or as early as 14 days old) through age 17. In most cases, once the child turns 18, they must apply for and purchase their own policy.
Is whole life insurance a good investment for a child?
A whole life insurance policy for a child doesn't build cash value quickly, making it a weaker investment option than a 529 plan or a child savings account.
Can I borrow against my children's life insurance policy?
Some children's life insurance policies allow you to borrow against the policy's cash value by taking a loan. It may also be possible to surrender the policy and receive its cash value.
Who can buy a life insurance policy for a child?
Typically, parents, grandparents or legal guardians can buy a life insurance policy for a child. Other relatives, family friends and unrelated people are usually not able to because they cannot demonstrate an "insurable interest," or evidence that they would suffer a financial or personal loss if the insured child died.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every life insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best life insurance companies, we compiled over 100 data points on more than a dozen life insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
While narrowing down the best life insurance companies for children, we focused on types of coverage for children, the minimum and maximum issue ages and state availability.
We incorporated customer satisfaction ratings from J.D. Power's U.S. Individual Life Insurance Study and complaint index reports from the National Association of Insurance Commissioners.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on those criteria, our top picks for life insurance for children are:
- For a standalone policy: Mutual of Omaha
- For term life insurance: Aflac
- For high coverage limits: American Family
- For babies: Gerber Life Grow Up® Plan
- For whole life coverage: Foresters Financial
- For children's term rider: State Farm
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