Life insurance is one of the most effective ways to provide for your loved ones in the event of your untimely death. According to a 2019 Life Insurance and Market Research Association poll, 66 per cent of Americans buy life insurance to help their families replace lost income if they die.
Children's life insurance is entirely another story. Although children's policies can cover funeral costs in the case of their premature death, many parents buy them to ensure their children's life insurance coverage as adults.
Furthermore, most children's policies allow you to accrue cash value that can be used to help your child pay for college, start a business, or buy their first home when they become older.
We examined over a dozen children's life insurance policies for this analysis. We selected the best firms based on policy benefits, price, simplicity of qualification, future coverage possibilities, and other factors. Here are our top four recommendations.
1. Mutual of Omaha
Mutual of Omaha, founded in 1909, was one of the first organizations to offer disability insurance to non-professional workers. Today, the company provides term, whole life, and supplemental Medicare insurance and has an A+ rating from AM Best.
We chose Mutual of Omaha as the best overall because of its good underwriting history, low rates, and quick application process.
Mutual of Omaha provides whole life insurance for children aged 14 days to 17 years old, with death payouts ranging from $5,000 to $50,000.
You may get a price and apply for coverage online in minutes by entering some basic information and answering a few health questions. There is no need for a medical exam.
Children's Whole Life insurance from Mutual of Omaha provides locked-in rates that do not increase with age, no reduction in benefits into maturity, the flexibility to acquire additional coverage without giving evidence of insurability, and a cash value that grows over time.
Each policy also includes a Guaranteed Insurability Rider, which allows the policyholder to purchase additional coverage for the covered children in specific life circumstances. The rider can be utilized up to five times by combining the milestones listed below:
- 25, 30, 35, and 40 years old.
- Marriage.
- Adoption or birth of a child
- Purchase of a home.
- Mutual of Omaha also has some of the most affordable prices
for children's life insurance.
Site: Mutualof Omaha
2. Globe Life
Globe Life is a life insurance company that was founded in 1900. Today, it provides a wide range of life and mortgage insurance plans to over 16 million consumers and has an A rating from AM Best.
We selected it as the best for babies because of its simple application process, lack of a waiting time, and the lowest locked-in rates for newborns we've encountered.
Globe Life provides straightforward, no-medical-exam whole life insurance that may be purchased online without consulting a doctor or speaking with an insurance salesperson.
Coverage is offered to people aged 0 to 24, with death benefit payouts ranging from $5,000 to $30,000 and an increasing monetary value. There is no need for a medical checkup, and coverage begins the day your policy is activated.
Globe Life has the lowest birth premiums we've found. Another
advantage is Globe Life's locked-in rates: premiums will not increase until
your child reaches the age of 24. To sweeten the offer, Globe Life's
first-month premium is only $1.
Site: Globe Life
3. State Farm
State Farm, which began as a car insurance firm in 1922, now offers a wide range of insurance, banking, and financial products. AM Best has assigned the corporation an A++ (Superior) financial strength rating.
We chose it as the best option for comprehensive family coverage since it allows you to easily add any number of children with a low-cost add-on rider.
State Farm Life Insurance offers term, whole, and universal life insurance plans and paid add-on riders that increase your coverage.
For example, the Children's Term Rider allows you to add as many children as you
like to your existing policy, with death payments of up to $20,000.
Children can also be added to your plan before birth and will be automatically covered once they reach the age of 15 days. This term coverage will expire when each child reaches the age of 25 or if the primary insurance is terminated.
When a child reaches the age of 25, a Children's Term Rider can be converted to permanent insurance. Like most children's life insurance companies, State Farm does not need a medical checkup.
To obtain an accurate estimate, contact your local State Farm Agent. However, State Farm's website predicts a monthly cost of less than $5 for $10,000 of coverage for each additional child.
Site: State Farm
4. Thrivent
Thrivent Financial was established in 1902 to provide insurance to the Lutheran community. Today, the organization has an A++ grade from AM Best and offers a wide range of financial solutions, investments, insurance, and banking services.
We chose Thrivent because it provides flexible, low-premium whole and term life insurance for children.
Thrivent's juvenile life insurance is comparable to many other whole life children's plans, and it is accessible to children from 14 days to 17 years.
The insurance includes guaranteed premium increases until the age of 70, cash value accumulation, and the flexibility to acquire additional coverage without underwriting.
You can also add a paid waiver of premium rider to a child's life insurance policy to ensure that premium payments continue if they become disabled as an adult. A medical examination is not required to apply for insurance.
Thrivent does not offer an online quote generator; therefore, you must contact a representative by phone or email to discuss policies and pricing. According to the website, a $25,000 coverage for a one-year-old boy will cost only $12 per month. This can change with time.
Site: Thrivent
Who Should Get Life Insurance for Their Children?
A life insurance policy for children is just one option to invest in your child's future. Most plans' cash value can be used as a savings account to aid with significant life expenses such as college tuition, marriage, or having a child once they reach adulthood.
Suppose your child has unique needs or a health problem. In
that case, a children's life insurance policy can allow them to obtain life
insurance as an adult without a medical test or requalification.
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