Best Children’s Life Insurance Companies of 2022
*The quotes above are examples of what a 40-year-old man in excellent health might pay for a $250,000 policy over 30 years.. Get life insurance quotes from multiple companies to find your best rate.
Protection wins because it offers the maximum amount of coverage on the children’s term rider, has great term insurance prices, and offers comprehensive coverage options for both children and adults.
But if you want living benefits included, consider Mutual of Omaha and Nationwide. If customer satisfaction is what matters most to you, a policy from Nationwide or State Farm may better suit your needs. And if you need a term insurance policy for children, you should go through Penn Mutual, which is the only leading insurer to offer this option. Penn Mutual is also a great choice if you want a permanent policy that pays dividends.
What is Child Life Insurance?
Children’s life insurance provides a death benefit if the child dies while the policy is in effect. Typically, permanent policies are available for children, but you can usually add a children’s term insurance rider to your own policy to provide a small amount of coverage for all of your children. Many companies allow you to convert the temporary rider to a permanent policy when the child becomes an adult. Most people buy children’s life insurance to cover burial costs in the event their child dies as a minor or to secure a low rate for the child’s life and protect their insurability.
What is a Child Term Insurance Rider?
A children’s term rider generally provides coverage for all of the insured’s current and future dependent children, including adopted children and stepchildren, up to a certain age. Coverage limits are usually $25,000, but some companies allow you to convert coverage to a permanent policy worth up to five times the rider amount once your child reaches adulthood. . And they can get the additional coverage without showing evidence of insurability, which helps protect your child’s access to insurance in case they develop health issues.
Depending on the company you choose, you may be able to add a children’s term rider to an adult, whole life, or universal life term policy. If children’s life insurance is important to you, be sure to compare the features of riders offered by each company, such as expiration age, convertibility, and whether coverage remains in place if the insured dies.
Should I take out life insurance for my child?
Children do not earn an income or have dependents, so while it is tragic for a child to die, it does not leave the child’s family in financial ruin. If you can cover a child’s funeral expenses with your emergency fund, a child life insurance policy may not be necessary. You should also think twice about using it as a college savings strategy because you’ll probably do better with a 529 plan.
However, if your goal is to make sure your child can have coverage for their family as they grow up, no matter what health issues arise along the way, you may want to consider a permanent policy or rider. convertible term insurance for children. Think carefully about your options. Although you may get a lower rate for your child by starting with a permanent policy, you could pay more premiums over time. A convertible children’s term rider is usually inexpensive and you can let your children decide if they want to convert coverage later.
How We Pick the Best Children’s Life Insurance Companies
Based on third-party consumer studies, such as the US Life Insurance New Business Study 2021 by JD Power and the Insurance Barometer Study 2021 by Life Happens and LIMRA, we determined the factors that most concern consumers. parents and guardians when purchasing life insurance for their children. We then rated over 91 life insurance companies based on over 50 data points, including ratings for the following:
- Policy Types and Features
- Amendments or endorsements
- Financial solidity
- Client satisfaction
- Customer complaints
- corporate age
- Options without medical examination
We selected the companies with the best financial strength ratings, the fewest number of consumer complaints, and the widest range of options and tools. We weighted each category as follows:
- Customer education, app and online service features: 32%
- Types of policies, features and riders: 29%
- Financial stability: 17%
- Customer satisfaction rate: 15%
- Cost: 8%
We then looked at which of the top-rated companies offer children’s life insurance policies and children’s term riders, and the features associated with each. For example, we looked at the maximum amount of coverage available with a children’s term insurance rider, whether it could be converted to permanent coverage, and what types of policies are available for children. We’ve ranked companies based on characteristics like these to select the best child life insurance providers.