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Life Insurance Policy for Children: Best Policies for 2021

Life Insurance Policy for Children - Best Policies

If you’re considering life insurance for children, then you’ve come to the right website.

This web post will talk about life insurance policies for children and what are your best choices for 2021. We will thoroughly explain the best plans that will protect your children in the future and whether or not you should opt for your child’s coverage policies.

Life Insurance Policies for Children: How do they work?

Life Insurance Policies for Children: How do they work

Insurance for minors are lifetime policies of around 10,000 to 50,000 USD of coverage. Every month, a small amount of your payment to the insurance is deposited in an interest-bearing account. This is called “cash-value”. These funds are collected over some time and come up to a hefty sum.

Child Life Insurance policies generally don’t require an exam of any kind. Parents and even grandparents can get a policy in the name of their child or grandchildren.

Life Insurance for Kids is usually very straightforward, but here is the fine print:

· The Premium can’t be increased

· The policy doesn’t expire even if the child becomes an adult

· The accumulated cash value can be withdrawn at anytime

· The amount of coverage can’t be decreased

As is evident, this fine print is not a cause for concern, and the terms and conditions of insurance for kids are pretty straightforward.

An additional option would be to include your child for coverage in someone else’s policy. This means they would get a part of the coverage too. But if the policy were to become inactive due to some reason, your child will miss out on the benefits too.

Another reason to get insurance for a child only is that when the child is the term-rider of another policy, once they reach adulthood, they are no longer covered by this policy. That is why it is always a smart choice to get standalone life insurance for kids.

Read on to find out more about child life insurance quotes and the best life insurance company that provides the best insurance for teens and babies alike.

What is Child Life Insurance Policy: Cost

The price of child life insurance policies doesn’t vary with gender. The cost does vary depending on age and the plan of choice. Life insurance for babies up to 4 years for coverage of 10,000$ has a premium of about 4 USD a month. That is the minimum. The maximum teenagers’ life quotes coverage of 50,000$ has a monthly premium of about 31 USD a month. Most children insurance plans fall within this range.

Top Ten Best Life Insurance for Children from Different Agencies

Top Ten Best Life Insurance for Children
Top Ten Best Life Insurance for Children

The following list is compiled based on,

·  Price

·  Ease of Application

·  Term-Riders Benefits

·  Agency’s Financial Strength

·  Customer Service

We have reviewed insurance policies and have compiled the list of the top 10 Child insurance Policies in the USA. The first three are ranked based on benefits. The rest are listed in no particular order. Not all of these agencies offer children’s lifetime insurance all over the USA.

First Place for Best Child Life Insurance Policy:

Mutual of Omaha Insurance

· Policy Period – Lifetime

· Accumulated Cash Value – Yes

· Fixed Premium Rate – Yes

· Expiry of Coverage – Nil

· Age Bar – 0 – 17

· Range of Coverage – 5,000 to 50,000 USD

Product Brochure

The best life insurance for kids is from Mutual of Omaha. It is the financially strongest insurance agency in the world. Their insurance for children is one of the best plans available in the market. It is one of the cheapest life insurances for children available, and their application process online is hassle-free. A premium of 4.00 USD per month for a 10,000 USD coverage is a steal compared to other policies. This plan also allows for two extra term-riders for no additional cost. This means that the main beneficiary of the policy can extend the coverage throughout their life.

Supposing the child gets married and has children of their own, they can increase the coverage to include their kids as well without having to produce any health certificates. They are allowed to do this five times throughout their life. The insurance can carry over to the next generation if needed. This is made possible by the premium waiver. This waiver extends the payment period of the premium if the main beneficiary passes away to 90 days.

Within this time, if someone else takes up the premium payment, then the insurance policy continues for the term-riders, who may become the main beneficiaries.

Mutual Of Omaha Insurance Premiums

AGE0-45-910-1415-17
10,000 USD4.00 USD4.80 USD5.50 USD6.90 USD
20,000 USD7.00 USD8.60 USD10.00 USD12.80 USD
30,000 USD10.00 USD12.40 USD14.50 USD18.70 USD
50,000 USD16.00 USD20.00 USD23.50 USD30.50 USD

Once you have decided on the plan, you can go onto their website and apply for the policy online. Once that is done, the agency sends the hard copy of the application and the policy documents to your address.

Second Place for Best Child Life Insurance Policy:

Gerber Life Insurance

·                 Policy Period – Lifetime

·                 Accumulated Cash Value – Yes

·                 Fixed Premium Rate – Yes

·                 Expiry of Coverage – Nil

·                 Age Bar – 0 – 14

·                 Range of Coverage – 10,000 to 50,000 USD

Product Brochure

Gerber has a very good babies’ insurance plan as well. Their child life insurance plan is especially unique; they double the coverage of life insurance once the main beneficiary turns 18. This is without increasing the amount of the premiums.

Their premiums are quite high, and the additional cost goes into extending this coverage for the child. They additionally guarantee extended life insurance coverage for the child later on in his/her life, and they aren’t required to show any evidence of insurability.

Gerber Life Insurance Premiums

AGE151014
10,000 USD6.79 USD7.68 USD9.05 USD10.38 USD
20,000 USD13.58 USD15.36 USD18.10 USD20.77 USD
40,000 USD26.08 USD29.61 USD34.80 USD39.97 USD
50,000 USD32.60 USD37.01 USD43.50 USD49.97 USD

Third Place for Best Child Life Insurance Policy:

Global Life Insurance

·                 Policy Period – Lifetime

·                 Accumulated Cash Value – Yes

·                 Fixed Premium Rate – Yes

·                 Expiry of Coverage – Nil

·                 Age Bar – 0 – 24

·                 Range of Coverage – 5,000 to 30,000 USD

Global Life is not renowned for its good customer service record, but they do have amazing plans for babies life insurance. Their premiums are extremely low compared to other plans on the market. They also provide coverage up to the age of 24. No other insurance company does this. Global life Insurance is the best option for those who want to get a child insurance plan for their children who have already grown into adulthood.

Global Life Insurance 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

Protective Life Insurance

·                 Policy Period – Lifetime

·                 Accumulated Cash Value – Yes

·                 Fixed Premium Rate – Yes

·                 Expiry of Coverage – Nil

·                 Age Bar – 0 – 18

·                 Range of Coverage – 5,000 to 20,000 USD

Protective Life insurance is a well-known company in the insurance market. They have a good track record financially. Their premiums are fairly priced in comparison to other insurance plans on the market. They are also one of the few insurance agencies that allow for insurance coverage of 18-year-olds.

Protective Insurance 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

 Foresters Financial Insurance

·     Policy Period – Lifetime

·     Accumulated Cash Value – Yes

·     Fixed Premium Rate – Yes

·     Expiry of Coverage – Nil

·     Age Bar – 0 – 17

·     Range of Coverage – 5,000 to 75,000 USD

Product Brochure

Foresters financial Insurance is probably one of the few insurance agencies that offer coverage up to 75,000 USD. Their premium costs are also affordable. Their prices match closely with that of Mutual of Omaha, though certain plans may cost a little more.

Foresters Financial Insurance 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

 Transamerica Insurance

·                 Policy Period – Lifetime

·                 Accumulated Cash Value – Yes

·                 Fixed Premium Rate – Yes

·                 Expiry of Coverage – Nil

·                 Age Bar – 0 – 17

·                 Range of Coverage – 1,000 to 20,000 USD

Transamerica is one of the few life insurance companies that offer a lesser premium cost for girl children. Their premiums are not the cheapest on the market, but they do offer good plans for those rates. The only downside to Transamerica insurance is that you can’t apply for the insurance online. You have to contact an insurance agent, either on the phone or in person.

Transamerica Insurance 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

American Amicable Insurance

·     Policy Period – Lifetime

·     Accumulated Cash Value – Yes

·     Fixed Premium Rate – Yes

·     Expiry of Coverage – Nil

·     Age Bar – 0 – 17

·     Range of Coverage – 10,000 to 35,000 USD

American Amicable Insurance is an A-Grade insurance agency. They even survived the great depression. They are a reliable source for insurance claims. Their insurance premiums are a little fairly priced, and they also have lower premiums for girls. But they do not have an online application service. This means you will have to contact an agent to apply for their insurance.

American Amicable Insurance 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

Royal Neighbors of America Insurance

·     Policy Period – Lifetime

·     Accumulated Cash Value – Yes

·     Fixed Premium Rate – Yes

·     Expiry of Coverage – Nil

·     Age Bar – 0 – 17

·     Range of Coverage – 10,000 to 49,999 USD

Product Brochure

The first-ever insurance agency to sell insurance for minors was this company. They offer lower premium rates for girl children. Unfortunately, they too don’t have an online application facility and therefore require you to contact an agent. Their prices are affordable, and they have a great track record for good customer service. They are also very timely with Insurance claims.

Royal Neighbors Of America Insurance 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

Physicians Mutual Insurance

·     Policy Period – Lifetime

·     Accumulated Cash Value – Yes

·     Fixed Premium Rate – Yes

·     Expiry of Coverage – Nil

·     Age Bar – 0 – 12

·     Range of Coverage – 5,000 & 10,000 USD

This insurance agency only offers two insurance plans – 5,000 USD and 10,000 USD. They have a very smooth online application process, and their premiums are affordable.

Physicians Mutual Insurance 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

Liberty Bankers Life Insurance

·     Policy Period – Lifetime

·     Accumulated Cash Value – Yes

·     Fixed Premium Rate – Yes

·     Expiry of Coverage – Nil

·     Age Bar – 0 – 17

·     Range of Coverage – 10,000 to 30,000 USD

Liberty Bankers Life Insurance Agency forces you to spend a minimum of 15.00 USD every month. But their premiums are priced competitively, and they have good financial backing.

Liberty Bankers Insurance 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

3 OF THE BIGGEST REASONS TO BUY A LIFE POLICY ON YOUR CHILDREN

Savings for College Tuition

Truthfully speaking, juvenile life insurance policies are not the best way to save for college. But it is a sort of savings account. Every month a small amount of the premium is put into the cash value account. This account adds interest to the amount, making it accumulate to a hefty sum at the end of 18 or more years. There is no growth limit for this account, and the funds can be withdrawn at any time.

So if the child needs the money for college tuition, or for a house, or any other great expenditure, they can withdraw from this account without having to cite a reason.

Insurability for Later Life is Guaranteed

Another benefit of child life insurance is that the child can claim the coverage later in life or even extend it up to a certain amount. They do not need to show proof of insurability. So if they develop health issues later in life, it will not stop them from increasing their insurance coverage.

Final Expenses

This is probably the most popular motivation behind people investing in child life insurance. This insurance can cover their final expenses, like funeral expenditure. Funerals and cremations cost more than 10,000 USD and knowing that there are finances set aside for that is a source of peace.

Should People Invest in Child Lifetime Insurance Plans ?

Honestly, it depends on the parents and their financial situation. Knowing that your child has a financial nest egg to rely upon in times of need is a great comfort. If you feel this is a necessity for your child’s future, then definitely invest in a child life insurance policy. If you feel insurance is not going to give you that much stability, then maybe don’t invest in one. It all comes down to whether the premium is worth the price. 

What is the Maximum Amount of Coverage?

Maximum Amount of Coverage
Maximum Amount of Coverage

Most insurance agencies offer coverage of up to 50,000 USD. Some companies offer more though. All agencies differ on their minimum and maximum coverage amounts, and so their premium rates as well. 

Am I Eligible to get a Child Life Insurance for a Child ?

Generally, Life Insurance companies only accept some form of legal guardians of the child to invest in life insurance for minors. This extends to – parents, grandparents, adoptive parents, great grandparents, Step-fathers or mothers, and legal guardians. Generally, the sibling cannot apply for a child’s life insurance, even if they are a major, unless they are registered as the child’s legal guardian. The same holds true for godparents as well.

This is because they do not consult the child for consent and thus only allow these people to get a minor’s life insurance in the child’s name. This is to stay away from any legal trouble. The grandparents can also apply for child life insurance without getting permission from the child’s actual parents. This allows for more people to invest in a child; they can get more coverage later in life.

Buying Life Insurance Plans for Babies

Buying Life Insurance Plans for Babies
Buying Life Insurance Plans for Babies

With easy online applications, getting a life insurance plan for minors doesn’t take more than five minutes. Another advantage is, insurance companies don’t ask for any medical or health certificates from doctors to authorize the insurance plan. The whole process is very smooth.

They only ask for the basic information like – Full name, DOB, Sex, A basic medical background.

While that was information about the baby, they ask for a few details about the person buying the plan as well – Name, Relationship to the main beneficiary, Address, Phone Number, Gender, DOB, Social Security Number, Term riders if any, and payment and banking related information.

After providing the necessary details, the agency sends you all the policy documents within a few weeks. If some people are wary of applying online, they can still consult agents or fill a paper form, though not all agencies offer paper forms nowadays.

The eligibility of the child for this insurance only depends on their results for a few medical questions. The child can get insured if he/she is not suffering from any chronic mental illness prior to applying for the insurance. These can be just filled out on the form, and the agency does not ask for the conducting of any medical exam most of the time.

FAQs on Child Insurance Policies for Babies, Kids and Teens

The following section answers the most frequently asked questions by parents, grandparents, or other legal guardians while taking up a life insurance policy for minors. These will clear any remaining doubts on this topic.

Are children eligible for life insurance?

There are many options to consider when it comes to child life insurance plans. There are many plans available on the market, and these are usually lifetime insurance policies. They offer coverage permanently for the child and also have an additional savings account that accumulates cash value over time, amounting to a hefty sum.

No child insurance policy requires the consent of the main child beneficiary. As long as you are their legal guardian or direct relative, you can take up an insurance policy in their name. This is true for babies, minors, and teenagers’ life insurance policies.

What Insurance can I take if my child has some pre-existing medical condition?

That will depend on the medical condition the child has. It is better to consult with an agent to check if the child will be eligible for life insurance or if there are any life insurance schemes that will take on the child with pre-existing conditions. Usually, insurance agencies decline insurance for children with chronic medical conditions.

Will there be a waiting period for the insurance?

No insurance agency has a waiting period for coverage. As soon as the premium payments start, the child is insured immediately. Even for the claim and payout, there are no waiting periods. Only in special circumstances, like suicide within two years of the insurance, will the insurance claim be denied or declined.

What is the age limit?

Usually, insurance agencies don’t offer child life insurance schemes for those above 17 or 18. There are a few companies that do and if needed, an agent can help you.

Do we have to wait for the baby to reach a particular age before applying for child life insurance?

Generally, Child life insurance agencies give insurance policies to babies that are 14 days old.