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Should you buy life insurance on behalf of your kids?

Like many parents, you might be wondering if you should buy life insurance for your kids, or perhaps insurance that can help provide for your children’s college education in the event you’re no longer here. Some financial experts say yes and some say these policies are generally set up to cover the loss of income of adults. There are benefits and your decision may involve various considerations.

newborn baby boy

With whole life insurance for your kids, they won’t be denied coverage in the future

If you buy a whole life insurance policy for your children now, they will be covered in the future as adults, regardless of their health, as long as premiums are paid. Just be sure that this is specifically stated in the policy — that your kid won’t be denied in the future if they encounter health or medical issues.

If there is a family history of health issues (such as cancer, diabetes, high blood pressure or obesity) that may make it more difficult for your children to purchase life insurance when they are in their prime income-earning adult years, it may make sense for you to get insurance for them now.

Life insurance can earn cash value

A whole life insurance policy can earn cash value — providing you and later your child money for college, a car or other purchases if needs arise. Before purchasing an insurance policy, be sure you understand about any penalties or fees for early withdrawal or for loans against the policy.

The rate can be locked in

By purchasing whole life insurance for your child now, you can lock in a low childhood rate for the life of the policy. Talk to the life insurance company about how your child can continue with the policy and even increase coverage when he or she becomes an adult.

We all plan on outliving our children. However, if something did happen to your child, a life insurance policy would cover funeral expenses — though peace of mind and funeral costs aren’t the only benefits of life insurance for kids.

Choose the right policy

Many insurance companies don’t offer high-quality life insurance that makes sense for both you and your children. Consider purchasing from a reputable company that has a proven track record with their children’s policies. For example, Gerber Life Insurance Company offers different insurance options that may make sense for your family.

The Grow-Up Plan®

This policy provides up to $50,000 of whole life insurance now, and the coverage automatically doubles at no additional cost when when your child is age 18. At age 21, your child becomes the policy owner. The low childhood premium rate is guaranteed never to increase, and your child will have opportunities to increase coverage up to 10 times the original benefit amount as an adult. You can start with a $5,000, $10,000, $15,000, $25,000, $35,000 or $50,000 whole life policy, and you can apply for it when your children are between ages 14 days to 14 years old. The Grow-Up Plan® guarantees the pay out amount and builds cash value. After 25 years, the policy’s cash value can be at least equal to or greater than 100 percent of premiums paid.

The Gerber Life College Plan

If you are looking for a college plan as well as life insurance, you should definitely consider the Gerber Life College Plan. This college plan is also adult life insurance that benefits your child if something should happen to you. The payments are fixed, and at the end of the 10 to 20 year term (your choice) it delivers a guaranteed payout of $10,000 to $150,000 for your child to use for college or anything else.

You can find out about both of these plans at

More about family finances

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Talking to kids about financial struggles
Teaching your kids about money and debt

Please note: Articles and other information included on this website are intended for the general interest of our readers, and are not intended to provide, and do not constitute, legal, financial, health or other advice. Gerber Life makes no claims, representations, or warranties as to the accuracy, completeness, or appropriateness of the general interest information for your particular circumstances. If you need legal, financial, health or other services, you should contact a duly licensed professional.

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