07/13/2026
Reasons to buy life Insurance for your kids
1. It’s permanent
Most life insurance policies for children are whole life insurance, which is a subset of permanent life insurance.
One of the greatest benefits of whole life insurance is that, as long as you continue to pay your monthly premiums on time, the policy covers you for life. This means that when your children become adults (and will likely want life insurance), they will already have a policy they can continue throughout their lives and it will be affordably priced.
2. It’s affordable
When you get a whole life insurance policy for your child, the monthly bill that you pay will depend on several factors, including the size of the policy as well as your child’s age and state of health at the time that the policy is purchased.
3. It will lock in their insurability
Your ability to get life insurance, and the cost of that insurance, is called insurability. Insurability is based, in part, on your health at the time that you apply for coverage.
4. It builds cash value
Another benefit of whole life insurance is that it will build cash value over time as you pay your premiums. Cash value is essentially a pool of money held within a whole life policy, which can be accessed at any time and for any reason unlike the death benefit, which is only accessible to beneficiaries once the policyholder dies. This money grows in a tax-advantaged way, unaffected by how the markets perform.
In the future, your child will be able to access the cash value of their policy if they ever have a reason to do so. It can, for example, be helpful in covering significant emergencies where the money in an emergency fund isn’t enough. It can even be used to pay for college, or a wedding, the down payment on a home , anything your child values.
5. It can be a helpful financial planning tool for your child
Due to its permanent nature, a whole life insurance policy taken out for your child can become a cornerstone of their financial plan , one that they carry throughout their lives and career all the way to retirement. As such, it has the potential to really stabilize their financial lives, potentially making it easier to save for retirement, invest for other financial goals, and plan their estates.
