Purchasing life insurance for an infant can be a controversial decision. Arguments for it include that the rates are cheap, that you can guarantee your infant's future insurability (in case they become sick or disabled) and that, in case of death, there will be enough money to provide a proper burial. Also, if you purchase a whole life policy, you can borrow against the built-up cash value in the future. Arguments against purchasing infant life insurance include that the infant does not provide an income that needs protecting, that even if they become sick in the future there are specialty companies that deal with high risk insurance, and that there are better savings options available, such as a 529 plan.
Step 1
Obtain a social security number for the infant. Most companies require a social security number before they will issue a policy. If the infant is a U.S. citizen, a social security number can be obtained by completing a SS-5 form found on the Social Security Administration's website and mailing it along with the proper documentation to your local social security office. Proper documentation would include a U.S. birth certificate or a U.S. passport.
Step 2
Verify that you have an insurable interest in the infant. You can't just purchase a policy for anyone. According to Insurance.com, you must "have a sufficiently strong relationship with that person based on blood, marriage or monetary interest." Parents, siblings and grandparents generally have an insurable interest.
Step 3
Contact your current life insurance agent and inquire about policies available. Discuss the pros, cons and options available with both term life and whole life insurance policies.
If you do not have a life insurance agent, contact your home or auto agent and see if they write life insurance or if they can provide you with a referral. Gerber also has a policy available that you can purchase by mail, over the phone or through the Internet.
Step 4
Decide on a beneficiary, complete the application and pay the premium. Often in the case of infants, the owner of the policy (the person who starts the policy) and the beneficiary (the person who receives the benefits) are the same person.
Things You'll Need
- Social security number
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