When you bring a newborn home, you are thinking about cribs, diapers, and sleep schedules—not life insurance. However, purchasing a permanent life insurance policy for your child is a powerful financial strategy.
1. Locking in Insurability
The biggest risk to our health isn't age; it's the unknown. If your child develops a medical condition (like diabetes or asthma) later in childhood, they could become "uninsurable" as an adult. By buying a policy now, you guarantee they have coverage for life, regardless of their future health.
2. The Gift of Cash Value
Whole Life policies for children are incredibly inexpensive because the "risk" to the insurer is so low. However, these policies accumulate Cash Value over time.
Example Strategy
You pay premiums for 20 years. By the time your child is 25, the policy is fully paid up. They now have a death benefit protecting their own future family, PLUS a cash savings component they can borrow against for a down payment on a home or to start a business.
It acts as a forced savings plan with tax advantages that can serve as a financial foundation for their adult life.
Explore whole life options for your family
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