Top 3 life insurance companies for grandchildren life insurance
Who wants the best for their kids? Parents and grandparents! And in this guide, will go over the best life insurance company for child life insurance.
What type of life insurance is it?
Life insurance for children is usually whole life insurance that gives $5,000-$50,000 of protection that lasts a lifetime. Because This life insurance lasts a lifetime:
- The premiums never go up.
- The policy never expires (as long as it’s paid for).
- The amount of coverage never decreases.
- There is a cash value that you can use.
Another option is to add a rider to your term life insurance. Term life insurance is insurance you have for a certain amount of time, and a rider is an option that you can add to any type of policy. Adding a child rider to a policy usually cost a little less than getting them covered in their own policy, but keep in mind that once the main policy ends, so too would the coverage for the child who is covered under the rider. So it is best to buy a standalone child life insurance policy.
Also, with child term life insurance riders, coverage for the child ends between the ages of 18 – 25, so once they reach that age that’s defined in the policy, the child is no longer covered.
Which life insurance companies are best for children?
The key features that went into deciding which top 3 life insurance companies for kids are best were price, ease of applying, financial strength, and customer service record. No term life insurance was considered for this list. So without further ado…
Here are the top three best whole life insurance companies for kids.
- Mutual of Omaha
- Gerber Life Insurance
- Globe Life Insurance
1st Place – Best Overall Life Insurance For Kids
1. Mutual of Omaha
- Coverage Amount: $5,000 – $50,000
- Age to start lifetime coverage: 6 weeks to 17 years of age
- Policy type: whole life insurance that lasts a lifetime
- Premiums: Never increases
Why is Mutual of Omaha best overall?
For starters, they have the best rates you will find. For example, a $10,000 whole life insurance for a child starts at around $4.50 a month.
It is also easy to apply, and grandparents, as well as great grandparents, can insure children. The only information needed to apply is the child’s name, date of birth, gender and answers to three health questions.
Another added bonus with Mutual of Omaha’s life insurance for children is it comes with two free riders:
- The Waiver Of Premium Rider automatically comes with the children policy at no cost where all premiums are waived for 90 days after the owner dies. This is to allow time for someone else to take over the policy so it doesn’t cancel.
- The Guaranteed Insurance Rider also comes with a children policy at no cost, and it allows the owner to buy additional life insurance on the insured’s life later at certain times during the policy, beginning in five-year increments from the 25th birthday to the 40th birthday, marriage/civil union, birth or adoption, and a purchase of a home.
What are the rates for this children’s life insurance? Click here to see..
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2. Gerber Life Insurance
- Age to start lifetime coverage: 6 weeks to 14 years of age
- Policy type: whole life insurance that lasts a lifetime
- Premiums: Never increases
Gerber’s Grow-Up Plan for children doesnt have the best rates, but it’s still a great policy, and here’s why.
The coverage is doubled once the child reaches the age of 18 while keeping the premium at the same amount.
Gerber also advertises a lot about their Grow Up plan, so a lot of people are familiar with it. They are also financially strong with a long history of paying their claims.
Even though Gerber is a financially strong life insurance company, the cost for their grandchild’s life insurance is higher than Mutual of Omaha and Globe Life Insurance, so they stand at number 2.
3. Globe Life
Rounding out at number 3 is Globe Life. They too are a financially strong company with low rates.
What stands out about Globe Life‘s children’s life insurance is that they accept “kids” as old as the age of 24. However the maximum death benefit amount with Globe Life grandchild insurance is $30,000, were as with Mutual of Omaha and Gerber, the maximum amount is $50,000.
Unfortunately though, because they have many complaints made against them that are higher than average, they were put at number 3 on our list, so I recommend buying life insurance for children from another insurance company.
FAQs About Children Life Insurance
Who has the right to buy a children’s life insurance policy?
You must be related to the child in one of the following ways:
- Parent
- Legal guardian
- Stepparent
- Adoptive parent
- Grandparent
- Great grandparent
Do I need consent from the parent to buy life insurance for my grandchild or great-grandchild?
You do not need permission from the child’s parent(s) to buy life insurance for your grandchild or great-grandchild. Getting a grandchild policy can be done easily without the parents’ permission or involvement.
Will my grandchild be accepted?
As long as the child was not born with any chronic medical condition, disease or disorder, he or she will likely qualify. However, the only way to find out for sure if is to apply. Before any payments are made, the insurance company will let you know if your grandchild will be accepted for a life insurance policy with their company.
The application process is easy, and the following information is needed to complete a whole life insurance application for grandchildren.
- Full name
- Date of birth
- Gender
- Correct answers to a few health questions
The insurance carrier will also need information about the person applying for the kid’s life insurance policy. (You will be the policy owner.)
- Your relationship to the child/children
- Your contact information
- Your SSN
- Your date of birth
- Payment information and date to process your payments.
Is there a cash value that grows in the life insurance policy for children?
Yes. This is a whole life policy that has a cash value that grows bigger and bigger the longer you have the policy. Keep in mind though, there are other options available to grow your money quicker, than a child life policy as a way to invest.
Which life insurance company has the best coverage for grandchildren?
In my opinion, Mutual of Omaha offers the best coverage for kids. I have my kids covered with them too.
Ready to apply? Click here.
Is there a waiting period for children’s life insurance?
No matter what kid life insurance company you choose, if you can answer “no” to the few health questions they ask, there is no waiting period. Coverage starts the day the first payment is made. The only exception is if the child commits suicide in the first two years of having the policy.
How soon can I get life insurance for babies?
For most insurance carriers who offer life insurance for kids, the minimum age for the baby is 14 days old.
Do I need life insurance for my grandchildren?
It all depends on your peace of mind. I have life insurance on my kids because, even though there is a low chance, death in a child can happen. And I have enough to pay for the expense for their funeral.
Some people also get life insurance for their grandchildren to also start them off with a policy where the premiums are locked in at a very affordable amount. Then when the grandchild becomes an adult, they can get more life insurance without getting medically approved. This is usually available due to life events, like getting married or having their own children.
Some people also like getting life insurance for their grandkids because there is a cash value that grows in the policy. However, one caveat to be aware of is that cash value is a loan that has to be paid back. If it’s not paid back, it is subtracted from the death benefit amount when the insurance company pays the death claim.
There is also the option to end the policy (also called a surrender) to get all of the cash value without having to pay it back. Unfortunately, though, you also end the life insurance protection for your grandchildren.
Another caveat is that cash value grows faster the higher the premium amount. Being that kid life insurance premiums are usually a small amount, it will take it longer to build.
In conclusion, if you want protection against the possible (you like how I put our slogan in this post, right), life insurance for your grandkids will give you the peace of mind you are looking for. Just make sure it fits in your budget, and get the policy with a reputable company like Mutual of Omaha.
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