When choosing a life insurance policy for a child, there are a number of important factors that need to be considered. The amount of the premium and the type of coverage being offered are two factors that must be taken into account.

Whole Life Insurance

When looking for a life insurance policy for a child, whole life insurance offers advantages that other forms of life insurance do not. The primary benefit to a whole life insurance policy for a young child is that the coverage period never ends with a whole life insurance policy. With a child, whole life policies will be there to provide the desired benefit, whether they live to be 40, 70, or 100 years old.   These policies build a cash value as the policy matures, giving the policyholder an investment vehicle to borrow against as their needs warrant. Because this cash value builds over the life of the policy, the amount of money invested per payment can stay fairly low, with the increasing cash value of the policy coming from the benefit of long-term investment strategies

Whole Life for Children: More Than Just Death Benefits

Guaranteed Insurability.  It is the right to buy reasonably priced insurance at certain times or events in the future, even if you become uninsurable. The increased coverage is available regardless of health factors, avocation, occupation or geographic circumstances. Even after your child grows up, they won't outgrow properly selected guaranteed insurability.

You buy the amount of permanent coverage you need now and attach a special rider known as the Option to Purchase Additional Insurance, or OPAI. Then, at specified ages or life events such as marriage and the birth of children, your child may buy a specified amount of coverage at standard premium rates for their age and gender, no questions asked.