What Every Parent Should Know About Child Life Insurance Plans
March 17, 2025
If you are a parent or parent-to-be, our team at 1891 Financial Life encourages you to consider the numerous benefits of child life insurance plans. With the right plan, you can secure your children’s financial future and set them up for success once they reach adulthood.
The benefits of child life insurance plans include lower premiums and the guarantee of future coverage regardless of any health issues that may arise. A robust life insurance policy also has the potential to accumulate cash value over time. If you’re curious about child life insurance plans, we’re here to help you navigate your options and support your forward-thinking approach.
Understanding Child Life Insurance Plans
If you’re a new parent planning to invest in life insurance for your child, you must first decide whether to purchase a term life or whole life policy. A term life policy usually offers lower premiums throughout the predetermined coverage period. Alternatively, a whole life policy provides lifelong coverage and features the added benefit of accumulating cash value.
At 1891 Financial Life, we can help parents compare coverages by evaluating the child’s current health, family medical history, and other factors.
The Benefits of Investing in Child Life Insurance
Future insurability is one of many reasons why parents elect to purchase child life insurance plans. Let’s say, for example, that a child is diagnosed with a congenital heart defect. Having a life insurance policy in place prevents that child from facing high premiums or being denied coverage entirely. It also guarantees access to affordable life insurance later in life, regardless of health status.
Child life insurance can also serve a deeper purpose. In the unthinkable event of a child's passing, a child life insurance policy can help cover funeral expenses and ease the financial burden during an incredibly painful time. No parent ever wants to consider such a loss, but having a plan in place can prevent added stress in a moment of unimaginable grief.
Common Misconceptions About Child Life Insurance
Unfortunately, there are many myths and misconceptions about child life insurance plans that can discourage parents from considering this valuable coverage. Some believe that the premiums are too expensive, assuming that the cost outweighs the benefits. In reality, child life insurance policies often come with low, fixed premiums, making them an affordable long-term investment in financial security.
Others assert that child life insurance is unnecessary, arguing that because children do not have income to replace, there is no need for coverage. However, these policies offer more than just financial protection in the event of a tragedy — they also secure future insurability, ensuring that a child can maintain coverage into adulthood without worrying about higher premiums or medical eligibility.
At 1891 Financial Life, we’re well-versed in child life insurance plans and understand the real benefits they provide. A tailored life insurance policy for your child offers affordable protection and peace of mind, helping parents plan for both the expected and the unexpected. Whether securing a child’s future coverage or providing financial relief during difficult times, child life insurance is a thoughtful and proactive way to safeguard their financial well-being.
Planning for the Future
Child life insurance can play a pivotal role in a family’s financial planning. 1891 Financial Life encourages you to research specific plans that may be of interest to you or schedule a consultation with an 1891 life insurance expert to discuss your options. Let's work together to give your child the thoughtful gift of a well-structured life insurance policy.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.