{"id":510401,"date":"2023-01-20T14:01:05","date_gmt":"2023-01-20T14:01:05","guid":{"rendered":"https:\/\/fidelitylife.com\/?p=510401"},"modified":"2023-01-20T14:01:05","modified_gmt":"2023-01-20T14:01:05","slug":"life-insurance-for-children","status":"publish","type":"post","link":"https:\/\/staging03.wordpress.fidelitylife.com\/?p=510401","title":{"rendered":"Life Insurance for Children"},"content":{"rendered":"

The very thought of losing a child is devastating for parents, grandparents, and guardians. However, depending on your family\u2019s health and financial circumstances, life insurance for children could help in an incredibly challenging time.<\/p>\n

Not every child needs life insurance, but if your family has a history of genetic conditions or if your child is dealing with a severe illness, it could make sense for you. Considering the worst-case scenario is incredibly difficult, but knowing the facts about life insurance for children can make the conversation easier.<\/p>\n

What is child life insurance?<\/h2>\n

Child life insurance refers to any policy a parent, grandparent, or guardian takes out for a child under 18. The policy offers a child\u2019s loved ones financial support should that child ever pass away, even into adulthood.<\/p>\n

How does life insurance for children work?<\/h3>\n

Like a life insurance policy for adults<\/a>, life insurance for children provides financial security in the form of a death benefit if a child passes away while the policy is in force. Beneficiaries will receive a lump sum payment to help with funeral expenses, allow loved ones to take time away from work, or use any way the family sees fit.<\/p>\n

Parents or guardians act as policyholders for a child\u2019s life insurance until they decide to transfer the policy over to the child. In some cases, the policy automatically changes hands when the insured child reaches a certain age. Typically, parents and guardians are listed as the beneficiaries<\/a> of the death benefit in addition to being the policyholders.<\/p>\n

Some providers offer standalone life insurance policies for children. Although Fidelity Life doesn\u2019t offer a standalone children\u2019s life insurance policy, we offer a child life insurance rider<\/a> that can provide coverage for kids as an add-on to their parent\u2019s life insurance policy.<\/p>\n

Is children\u2019s life insurance different than a child life insurance rider?<\/h3>\n

Both children\u2019s life insurance and child life insurance riders offer life insurance coverage for children and a death benefit if they pass away. However, key differences set them apart. While children\u2019s life insurance stands alone as a distinct policy, riders supplement existing life insurance policies to expand coverage.<\/p>\n

As you apply for your own life insurance policy, you may add a child life insurance rider to provide your kids with coverage. However, that rider expires once your kids reach young adulthood or once your policy term ends (whichever comes first). If children wish to extend the coverage, Fidelity Life allows children to convert their life insurance riders into permanent policies when they turn 23 or the policy expires, whichever happens first.<\/p>\n

What does child life insurance cover?<\/h2>\n

If the unthinkable happens, child life insurance can cover expenses so your family can focus on grieving and healing. A life insurance policy can cover medical bills or safeguard you and your loved ones from scrambling to afford a funeral, especially considering the average funeral cost in the United States<\/a> is around $9000. The death benefit can cover that cost and related expenses like memorials, religious ceremonies, cremations or burials, and travel. The life insurance policy could also replace your income, allowing you to take time away from work.<\/p>\n

What is the cost of child life insurance?<\/h2>\n

The cost of children\u2019s life insurance depends on how much coverage you want and your child\u2019s age. You\u2019ll typically pay more expensive premiums if you choose an option with a higher death benefit. Overall, insurance for a child typically costs less than insuring an adult. Nevertheless, the cost of life insurance goes up with age. The best way to determine the potential cost of children\u2019s life insurance is to contact a licensed insurance agent.<\/p>\n

Pros and cons of buying life insurance for children<\/h2>\n

Understanding the benefits and drawbacks of purchasing life insurance for kids can help you make the best decision for your family.<\/p>\n

Pros<\/h3>\n