A Simple Guide to Child Life Insurance [2023]

You may have been considering means, such as 529 plans, to save towards your kid’s future. However, you can also work toward this goal with life insurance for children in 2023.

Today, many Americans skip purchasing life insurance. However, while this practice may save you a little money now, it could cost you dearly in the future.

Fortunately, you’ve come to the right place to learn a bit more about the topic. Here, you’ll learn the basics of child life insurance and signing up for a policy.

Whole life insurance [2023] is a benefit that protects your child. However, they can also use it for college savings and to pay for expenses such as student loans in the future.

For a simple guide to child life insurance, continue reading.

What Is Child Life Insurance? [2023]

Child life insurance is similar to life insurance for adults, in that the policyholder pays premiums for coverage that will pay out to a beneficiary. However, with child life insurance, the beneficiary is typically the parent, and the death benefit is paid out if the insured child passes away during the policy term.

Typically, child life insurance policies are whole life policies, meaning that the coverage lasts for the child’s entire lifetime.

For example, you most likely recall seeing advertisements for Gerber Life Insurance. The company markets its insurance as a tool that you can use to pay for educational expenses.

Gerber Life Insurance also offers to lock in affordable premiums to protect your child. In addition, the policy also covers funeral expenses if your child should pass.

However, unless your child has a severe medical condition, the Gerber policy isn’t as competitive compared to other policies. Furthermore, a policy such as the Gerber offering comes with high administrative fees. It also provides a low rate of return.

Benefits of Life Insurance for Kids in 2023

You may want to consider another whole child life insurance plan. Still, you might wonder why your child would need a policy. After all, you’re the one who supports them financially.

A life insurance policy can help you to protect your child’s insurability. This benefit is a top reason parents buy life insurance policies for their children.

In the past, the idea of purchasing a life insurance policy for a child may have proved unthinkable. However, with the emergence of COVID-19, many parents are rethinking their views on this topic. Resultantly, parents or grandparents, just like you, are investing in insurance policies for kids to make sure that their children remain insurable.

The coronavirus doesn’t affect children with the same severity as adults. Still, anyone can contract COVID—and at nearly any age. But, for now, physicians have no idea how contracting the virus can lead to future health complications.

COVID-19 could result in a range of health problems. For example, parents who purchase life insurance now don’t want their children worrying about accessing life insurance coverage at a later date.

However, these aren’t the only reasons for investing in a life insurance policy for a child. A knowledgeable insurance broker can help you to review your options.

Buying Life Insurance for Your Child [2023]

As a parent in 2023, you may not want to put your children through the process of purchasing life insurance. However, it’s worth knowing that buying life insurance for kids is typically easier and faster than purchasing one for an adult.

Unlike an adult policy that often requires a medical exam, with a child’s policy, you only need to fill out an application form, saving you and your child time and hassle. In fact, you can usually access insurance by filling out a single electronic form and waiting for the underwriter to complete the sign-up process.

Children’s whole life insurance is typically available until a child reaches the age of 17. However, some underwriters may establish a lower sign-up age limit. For instance, Gerber Life Insurance has a maximum sign-up age of 14 years old.

By considering life insurance for your children, you can help protect their future financial security and ensure they have a solid foundation for their future.

In either case, the policy will remain valid for the duration of your child’s life. The only thing you’ll need to do is make sure to pay the monthly premiums. Also, you can transfer the policy to your child at any time.

Insuring Your Child Under Extraordinary Circumstances [2023]

In some instances, it’s prudent to purchase life insurance for your child. For example, you may have a child with special needs. In this case, a life insurance policy will cover expenses if something unfortunate were to happen to your child.

However, there’s a more complicated issue with purchasing life insurance for a child with special needs. In this instance, you must think through whether to purchase life insurance to address the chance that you might outlive your child.

With this in mind, a life insurance policy for a child with special needs can prove beneficial for family members and caregivers. But, again, a knowledgeable life insurance broker can help you assess your options.

As a parent of a child with special needs, you may have to forego your career. You may have also not had the opportunity to invest sufficient money into retirement savings or pension accounts.

Likewise, your Social Security benefits may have also been adversely affected because you had to forgo work to care for your child. In this regard, a life insurance policy can help to replace wages and retirement benefits.

You’ll want a life insurance policy [2023] to cover funeral expenses in most instances. However, you can also use a child life insurance policy to make up for lost income opportunities.

Should I Buy Life Insurance for My Child?

In certain situations, it may be advisable to purchase a life insurance policy for a child. However, before making a decision, it’s essential to consider your family’s medical history, among other factors.

For instance, if your child has a chronic illness that could make it challenging for them to acquire insurance as an adult, buying coverage for them while they’re young might be worthwhile. This is especially pertinent in 2023, where healthcare costs are on the rise, and early planning can provide a sense of financial security for the family. Therefore, it’s crucial to evaluate the long-term implications and potential benefits of purchasing a life insurance policy for a child with a chronic illness that could worsen over time.

Insurance Policy Money Matters

You might be curious about the cost of child life insurance in 2023. The price of this type of insurance policy will depend on your child’s age, the death benefit amount, and the timing of fully paid premiums.

While a life insurance policy can also serve as a means to build cash value, it should not be viewed as the sole method of saving for college. Instead, it’s advisable to explore other options like 529 plans or savings accounts.

It’s important to note that in 2023, there may be variations in the cost of child life insurance policies among different insurers. Therefore, it’s recommended to compare quotes from multiple companies to ensure that you’re getting the best deal.

Why You Should Buy Life Insurance ASAP

In 2023, it’s important to consider purchasing a life insurance policy for your child when they’re young, as it can be more affordable. With a whole life policy, you can secure a fixed rate for the duration of the policy, guaranteed by the insurer.

The type of life insurance you choose also affects the cost of your premium. Additionally, your payment amount may vary based on your selected payment schedule. It’s crucial to explore your options and compare quotes from different insurance providers to ensure you get the best value for your investment.

For example, you could choose a long-term life insurance policy that’s payable between the ages of 65 and 100 years old. The more you stretch out the payments, the lower your premiums will cost.

Alternatively, your insurer might offer you the option to pay off your policy in a certain number of years. For example, you can purchase an insurance policy with a 10-year and 20-year payment option.

However, this kind of policy will have higher premium payments. Still, you may want to consider this payment option if you want to turn over a paid-off policy to your child.

At this point, you most likely have a lot to think about if you’re considering purchasing a life insurance policy for your child. An experienced insurance broker can help you to sort through your options.

Learn the Cost of Securing Your Child’s Future Instantly

Now you know a bit more about child life insurance [2023]. What you need now is an insurer that you can trust to look out for your best interests.

Top Whole Life specializes in instant whole life quotes. We can help you to find the insurance that you need immediately. More importantly, we can provide you with the information you need to make an informed buying decision.

At Top Whole Life, we’ll help you compare the best life insurance plans for your needs. What’s more, we’ll make the insurance buying process simple.

Contact Top Whole Life today at (855) 946-5353 or connect with us online to learn more about the best of what life insurance companies have to offer.