Do I Need Life Insurance for My Baby?

When it comes to buying life insurance for children, there are key benefits to doing so that you should know about. Here's a look at when to buy baby life insurance and how to buy an affordable policy.

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Do I Need Life Insurance for My Baby?

When you have a new child, the last thing you are thinking about is that child dying unexpectedly, but with life insurance for babies, it may be possible to minimize the financial loss that can come from this type of tragic event. Whether or not you need life insurance for children is a personal decision, but there are some key reasons why you should buy this typically low-cost life insurance policy. Take a look at how life insurance for kids can offer some benefits to your family.

What Is Baby Life Insurance?

Baby life insurance, or life insurance for children under the age of 18, tends to be something parents think about but are not sure if they need to invest in. A typical adult life insurance policy is meant to help cover the costs of a family should a breadwinner die. For example, if you work full time, your family depends on your income. If you were to die, they would struggle with that. However, this does not apply to children because they are not breadwinners.


However, baby life insurance is valuable because it can help to cover the end-of-life needs of that child, alleviating the financial strain that many parents face if such a tragic event takes place. Most parents do not think about this occurring, but the cost of burial can top $10,000, making it hard for you to pay for your child’s needs should this occur.

What Are the Benefits of Life Insurance for Children?

When you consider that life insurance for kids tends to be very low priced, it makes sense to consider the advantages it can offer. This is a type of term life insurance. It is generally in place for the first 10 to 20 years of a child’s life. After that, the child may elect to renew it. Having it in place means the family will receive a specific payment should the child covered in the policy die during the term. It allows the family to have the funds they need to take care of the child’s burial, medical costs, or any other needs.

What Should You Look for When Buying Life Insurance for Kids?

When buying life insurance for children like this, it is important to consider the amount of coverage being provided. You also want to consider the need for coverage that does not limit the causes of death. It can be hard, for example, for a family to obtain this type of policy if the child has already been diagnosed with a life-shortening illness or condition. Be sure to be upfront and clear with the insurance company about your needs, the child’s health, and the overall coverage goals you have.

Life Insurance for Parents Is Even More Important

While life insurance for kids is valuable, life insurance for parents is essential. You have dependents who rely on your income to help pay for their needs. As a result, most parents should have life insurance, at least a term life insurance policy, to cover their family’s needs should something happen to the parents during the child’s youth. With your life insurance, you can help make sure your family is able to maintain their quality of life even if you are not there to financially support them as they do. Parents should have life insurance that provides for any dependents they have as wage earners in the family.

Updating Life Insurance for Children

It is important to know that life insurance policies for kids are typically term policies, which means they do end after 10 to 20 years, depending on the situation. However, it is important for families to update the policy over time. In some situations, children can elect to continue the policy into adulthood, if they would like to. Doing so may help them to secure a low rate policy that allows them to maintain financial protection for their own family. However, even if they do not, it is important to keep the policy up to date with coverage that matches your needs for the child as he or she gets older.