What is Juvenile Life Insurance?
Juvenile life insurance is coverage designed to insure the life of a minor. You can purchase standalone policies for your child, or you may be able to add coverage for your children as a rider on your own policy.
Standalone juvenile life insurance vs. child riders
Some people choose to purchase standalone life insurance policies for their children. While it might seem unnecessary to insure someone so young, buying life insurance for a juvenile generally offers three distinct benefits:
Guaranteed insurability. Most juvenile life insurance policies come with the option to maintain coverage once the child reaches adulthood without the need for any medical underwriting. That means that if a health condition arises that would make coverage more expensive — or even impossible — for the insured to get, they’ll still be able to maintain life insurance coverage.
Cash value accumulation. Juvenile life insurance can come with a cash value component, or a savings element within the policy. Buying it young allows the cash value to accrue as the child reaches adulthood.
Affordability. Premiums for a juvenile life insurance policy are generally much cheaper than premiums for an adult’s policy.
If parents want to insure their children but are not concerned about guaranteed insurability or cash value, they may be able to do so using their own life insurance policies. Some insurers offer child riders, or add-ons to a parent’s life insurance policy that covers their children (with a smaller death benefit) up to a certain age.
While standalone juvenile life insurance policies can be part of building a child’s financial portfolio, child riders are generally a more affordable way to ensure that parents have money for their children’s funeral expenses should the worst happen.