Buying life insurance on children might seem odd at first—after all, they usually don't have income or dependents. But there are a few practical and emotional reasons some parents or guardians choose to do it. Here's a breakdown:
1. Lock in Low Premiums for Life
Why it matters: Children are typically very healthy, so you can get a very low premium that stays level for their entire life.
If they develop a health condition later, they’re already insured.
2. Guaranteed Insurability
Some policies come with riders that let your child buy more coverage later in life, regardless of their health.
This can be a huge benefit if they develop a chronic illness or high-risk condition that would otherwise make insurance unaffordable or impossible to get.
3. Cash Value Growth (for Whole Life policies)
Permanent life insurance (like whole life) builds cash value over time.
That money can be borrowed against later for college, a car, a home down payment, etc.
It’s not the most efficient investment tool, but it’s a stable, forced savings option.
4. Final Expenses
No one wants to think about it, but in the tragic event of a child's death, life insurance helps cover funeral costs and gives parents time to grieve without financial stress.
5. Legacy or Gift
You can gift a life insurance policy to your child when they’re older—maybe when they graduate or get married.
It becomes an asset they can maintain or borrow against in adulthood.
Sit down with an agent at Ieuter Insurance Group to discuss all your insurance options.
Your Friends In The Insurance Business at Midland's Ieuter Insurance Group can answer your insurance coverage questions.
For all your insurance needs, visit us at https://www.ieuter.com
Ieuter Insurance Group - 414 Townsend St Midland MI 48640
(989) 487-1758
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