A method to provide coverage for children later in life as a parent, grandparent, or legal guardian is to purchase life insurance for them now. Some families choose to insure their children with life insurance to lock in a low rate, safeguard their insurability, and cover funeral costs in the case of their passing. However, it is often inferior to other savings schemes, children’s life insurance is frequently promoted as a means of saving for college.
There are several options for child insurance. You can either buy a separate policy in the child’s name or add a children’s life insurance rider to a term or permanent policy that you already have in place for yourself. The top providers of kids’ life insurance provide both options and allow you to upgrade a kids’ term rider to permanent coverage once the child reaches adulthood. The easiest way to obtain a quotation and submit an application for a child’s life insurance is to speak with an agent directly. The top 5 child insurance plans are listed here.
1. Protective
Protective provides a variety of options for child coverage. It offers the most economical term policies among insurance carriers and has the largest term conversion limitations for children. You can acquire up to $25,000 in coverage through Protective’s children’s rider for all of your present and potential children, who range in age from 15 days to 18 years. You can choose to convert the rider into permanent insurance worth up to five times the face value of the rider once your children turn 25. If you want permanent protection, Protective also provides entire, universal, and indexed universal life policies for kids.
Pros
- It has a children’s term convertible rider
- Paid-up benefits if the insured dies suddenly before the children
- It has a variety of child policy options
2. American Family
American Family, often known as AmFam, stands out for its extensive coverage levels and flexible payment alternatives that let you finish the policy sooner. You have a choice between a 10-year payment plan and a 20-year payment plan, with the latter having lower life insurance rates. No matter the plan you choose, the premiums are fixed. Various coverage amounts are available: $25,000, $50,000, or $75,000
You can expand the coverage when the child goes through significant life events, such as getting married, purchasing a home, or becoming a parent, according to the policy’s built-in guaranteed purchase choice benefit rider. During any of those periods, American Family does not demand a medical checkup for life insurance.
Pros
- Available in large coverage levels.
- Living benefits are included in the policy.
Cons
- For a quote, you must contact Nationwide.
- There is no opportunity to apply without using an agency.
3. Mutual of Omaha
A variety of riders are available from Mutual of Omaha, including unique ones like a disability income rider and a return of premium option for term insurance. However, the majority of policies include two or more living benefits, while Express Term and Express IUL policies have three total living benefits for critical, terminal, and chronic conditions. This is only one of the factors that make it one of the best term life insurance providers.
A guaranteed insurability rider and/or a waiver of premium rider can be added to the children’s whole life insurance that you can purchase as a stand-alone policy. The children’s whole life policy is among the no-medical-exam options for life insurance.
You can acquire up to $10,000 in coverage for all dependent kids between the ages of 15 days and 20 years old if you decide to add a dependent children’s rider. If the insured person turns 65, the youngest kid turns 23, or the base policy expires, it will run out. Like many other reputable insurers, Mutual of Omaha enables you to convert the children’s rider into a permanent policy with a face amount of up to five times the rider coverage amount. It should be noted that this has a modest face amount when compared to insurers who provide up to $25,000 in coverage.
Pros
- It has a children’s term convertible rider
- A lifetime of children and two attractive riders
- Various riders are readily available.
- Most insurance provides living compensation.
Cons
- On kid riders, the face value is limited to $10,000.
- Children only receive entire life insurance.
4. Penn Mutual
The widest selection of permanent kid insurance choices is provided by Penn Mutual. For your kids, you can buy universal life, variable universal life, indexed universal life, whole life, and one-year term plans. Since the one-year term policy can be converted to a permanent policy, it’s a good choice for short-term requirements or if you can’t now afford the cost of permanent coverage.
You can get up to $25,000 in coverage with a children’s rider on your policy. With this choice, on the policy anniversary that is most closely associated with their 23rd birthday, your children can convert to a permanent policy for up to five times the amount of the rider. Additionally, the organization has a stellar track record of paying dividends to qualified policyholders, having done so continuously since 1847. It also ranks well among the best no-medical-exam life insurance providers because of its unparalleled coverage limits. Certain healthy applicants are qualified to apply for coverage of up to $7.5 million without undergoing a medical examination.
A child’s rider on your insurance can provide coverage of up to $25,000. Using this choice, your kids can convert to a permanent policy for up to five times the rider’s value on the policy anniversary that is most closely associated with their 23rd birthday. However, the organization has a stellar track record of paying dividends to qualified policyholders, having done so continuously since 1847. It also ranks highly among the leading no-medical-exam life insurance providers because it offers the greatest coverage levels. Those who are in good health can apply for coverage of up to $7.5 million without having to undergo a medical exam.
Pros
- It has a children’s term convertible rider
- High-coverage no-medical-exam plans for qualified candidates
- Several insurances are dividend-eligible
Cons
- No online quote or application
5. State Farm
State Farm provides term, whole, and universal life insurance plans with paid add-on riders that increase your coverage. One of these, the Children’s Term Rider, enables you to include as many kids as you wish in your current policy and provides death payments of up to $20,000. Even before they are born, you can add a child to your insurance plan, and they will be automatically covered once they turn 15 days old. When each child turns 25 or, if the primary insurance expires for any reason, this term coverage expires.
When a child reaches the age of 25, a children’s term rider can be upgraded to permanent insurance. State Farm does not demand a medical checkup, like the majority of children’s life insurance policies. You must speak with your neighborhood State Farm agent to receive a precise quote. On the other hand, according to State Farm’s website, each additional child would add another $10,000 in coverage for less than $5 per month.
Pros
- Top-ranking for customer satisfaction
- Universal life and Whole life insurance are available.
Cons
- Few additional customisation options
- To apply for a term, you must contact an agent.
Wrapping Up
This article will help you decide which insurance plan is ideal for your child by concentrating on companies with a solid track record of financial stability. Additionally, look for organizations that offer reasonable prices and simple conversion choices to adult policies when the child policy ends.
However, while cash value is a fantastic aspect of the majority of children’s life insurance policies, it isn’t always necessary. Beyond just having money available for borrowing, there are many other ways to use this insurance to invest in the future of your child. A solid policy, in the end, enables your child to maintain coverage as an adult to support their own families or to cash out their policy when they reach adulthood to aid with the next phase of their lives.
You May Want to Check These Posts:
