Buying a life insurance policy for your child can prove valuable in the event that the unthinkable happens. No parent enjoys thinking about losing their child, but you still must plan for this possibility. In addition to their obvious use, a children's life insurance policy can also benefit the child, as many of them can transition to an adult policy upon reaching a certain age. Various life insurance companies offer children's policies.
Gerber Life Insurance Company
Gerber Life Insurance Company offers a children's policy called The Gerber Grow-Up Plan. According to GerberLife.com, you can purchase this policy for your child if they are between the ages of 14 months and 14 years. The Grow-Up Plan is whole life insurance and accrues cash value as long as you pay the premiums. The policy's cash value will reach at least the amount of the premiums paid or more after the policy has been active for 25 years. Your child's policy amount will double automatically when he turns 18, and GerberLife.com guarantees the premium will remain the same as before. The Gerber Grow-Up Plan offers guaranteed future insurability to your child, and he can choose to purchase more coverage as an adult at standard rates (See References).
Globe Life Insurance Company
Globe Life Insurance Company offers a policy for kids called The Young American Plan. According to GlobeLifeAffiliateProgram.com, this plan offers lifetime protection regardless of health changes or age. Globe guarantees the rate will remain the same for the entire life of the policy, and the insurance can never be canceled, as long as premiums are paid. The Young American Plan is whole life insurance and also accrues cash value. Coverage amount options range from $5,000 to $30,000 (See References).
Modern Woodmen of America
Modern Woodmen of America offers two life insurance policies for children. As stated on the website, Modern-Woodmen.org, both are term policies, which means the coverage ends at a certain age and the insured will then need to convert to a permanent policy.
The first children's life insurance policy Modern Woodmen of America offers is called the Junior Max plan. This policy is for children ages 0 to 10 years, and it stays active until age 18. The coverage amount is $7,500 and costs a flat rate of $24 per year. Upon the termination of the Junior Max policy, your child can convert to a permanent life insurance policy in the amount of $15,000 without having to prove insurability. After converting to a permanent policy, the insured is guaranteed protection for life as long as they pay the premiums.
The second children's life insurance policy sold by Modern Woodmen of America is called Step One. You can purchase this policy when your child is between the ages of 0 and 25 years. It is available in the coverage amounts of $10,000 or $25,000, and will terminate upon reaching 30 years of age. Like with the Junior Max plan, the insured can then covert to a permanent policy with guaranteed insurability and coverage for their lifetime. The permanent policy's coverage amount can equal up to two times the amount of the Step One term plan.
Purchasing insurance through Modern Woodmen of America garners benefits that include club membership and college scholarships (See References).
Mutual of Omaha
Mutual of Omaha offers whole life insurance for children between the ages of 14 days and 25 years. You can purchase policies in the amount of $30,000 or less and rates are guaranteed to never change, according to Mutual of Omaha website. After becoming an adult, your child can purchase coverage of up to $150,000 regardless of changes in health, due to Mutual of Omaha's guarantee of insurability. This policy builds cash value as long as the insured pays the premiums (See References).
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