1Two Ways to Cover a Child
| Child rider | Policy of their own | |
|---|---|---|
| How it works | Added to a parent’s policy | A separate policy on the child |
| Who is covered | Usually all your children, for one premium | One child per policy |
| Amount | Small | You choose |
| Cash value | No | Yes, on a whole life policy |
| When it ends | At an age set in the rider, often with an option to convert | Never, on a permanent policy |
2Why Parents Buy It
- Insurability: if your child develops a health condition later, their coverage is already in place.
- A lifelong start: premiums set at a young age stay low on a permanent policy.
- A gift that grows: a whole life policy builds cash value your child can use as an adult.
- Final expenses: money for costs no family should have to think about.
3Who Owns the Policy
A parent or grandparent owns the policy and pays the premiums. Ownership can usually be transferred to the child when they are an adult, and in many cases this can be done without tax for a policy on the child’s own life. Your advisor explains the ownership and transfer terms of the plan you choose.
4Critical Illness for Children
Some families also cover their children for critical illness, which pays a lump sum if a child is diagnosed with a covered condition, so a parent can take time off work to care for them.
5How to Get a Price
The right choice depends on your own coverage and how many children you have, so an advisor builds your quote: a rider on your policy, a policy for each child, or both side by side.
6Frequently Asked Questions
Do children need life insurance?
They do not replace an income, so it is optional. Parents buy it mainly to lock in lifelong, affordable coverage while their child is healthy.
What is a child rider?
An add-on to a parent’s policy that covers the children for a small amount, usually all of them for one premium.
Can grandparents buy a policy for a grandchild?
Yes, with the parents’ consent. The grandparent can own the policy and pay the premiums.
Can the policy be transferred to my child?
Usually yes, once they are an adult. Your advisor explains how the plan you choose handles the transfer.
How do I get a price?
Book a time with an advisor. They compare a rider and a separate policy for your family.
Ready When You Are
Decide with real prices and honest answers. When you want help, a licensed advisor goes through your application with you and explains your coverage, in your language.