Most individuals add children to their term life policies, for $10,000 on each healthy child, you can expect to pay, around $5.00 or $6.00 per month. Many also purchase a Whole life insurance, however these polices are much more expensive in the long run, even tough the monthly premium may be lower.
Depends on the age of the child. I like to show clients limited pay whole life for children. Meaning it's not pay premiums for lifetime. 20 pay means that the premiums are payable for 20 years and then the policy is "paid up". 10 Pay is the same except it's paid up in 10 years. They can keep the policy or surrender it for cash once it's transferred to the child's name. I do many $25,000 20 pay plans for 1 and 2 year olds. Usually it's the grand parents buying them. The premium for that is from $15 to $18/mo. depending on male or female. About twice that is you gow ith 10 pay.
I don't care for child riders but they are better than no coverage.
Child Riders:
I always offer a child rider to parents. Recently (today) I added $20,000 child rider a mother's policy. It cost her a whopping $8.60. Not each, but for all 4 children. So the cost per child is $2.15. And if she has more children or adopts they are covered from the 15th day of life with no qualifying. No extra cost.
The automatic coverage has meant the difference of being able to cover a child born with a grave illness or not. Which brings up another benefit of most child riders. Guaranteed convertibility of up 5 or 6 times the amount. In the case above when a child reaches age 25 they have the guaranteed right to convert the $20,000.00 rider to $100,000.00 Permanent plan. No medical questions, no exams, no blood work. At standard rates. That is a huge benefit. We have converted young cancer patients, a Marine in Iraq and a 25 year old that had been in a coma for years to name a few. All for $8.60 or $2.15 per child. And they can still buy individual policies on the kids. Or use the saved money to buy much more coverage on mom and dad.
Individual child policies:
I am also a big proponent of short paying a childs policy. Actually just about anyone under 60 that can afford the extra premium. I do not really show cash values on small policies as they take a very long time to grow and normally do not amount to much.
Twenty years ago we were selling $5,000 Burial and Child plans. While better than nothing, the now grown children are underwhelmed with the face amount or small cash values. Today I am suggesting much larger plans. Not child plans but plans that will be worth more when they are adults and need to protect their own children. $50,000, $100,000 or even $250,000 plans are not unusual and very reasonable from top rated Insurance Companies. Starting at about $20.
As always an experienced Life Insurance Agent is your best source of information. One that has more than one or two companies or types of insurance.
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I don't care for child riders but they are better than no coverage.
I always offer a child rider to parents. Recently (today) I added $20,000 child rider a mother's policy. It cost her a whopping $8.60. Not each, but for all 4 children. So the cost per child is $2.15. And if she has more children or adopts they are covered from the 15th day of life with no qualifying. No extra cost.
The automatic coverage has meant the difference of being able to cover a child born with a grave illness or not. Which brings up another benefit of most child riders. Guaranteed convertibility of up 5 or 6 times the amount. In the case above when a child reaches age 25 they have the guaranteed right to convert the $20,000.00 rider to $100,000.00 Permanent plan. No medical questions, no exams, no blood work. At standard rates. That is a huge benefit. We have converted young cancer patients, a Marine in Iraq and a 25 year old that had been in a coma for years to name a few. All for $8.60 or $2.15 per child. And they can still buy individual policies on the kids. Or use the saved money to buy much more coverage on mom and dad.
Individual child policies:
I am also a big proponent of short paying a childs policy. Actually just about anyone under 60 that can afford the extra premium. I do not really show cash values on small policies as they take a very long time to grow and normally do not amount to much.
Twenty years ago we were selling $5,000 Burial and Child plans. While better than nothing, the now grown children are underwhelmed with the face amount or small cash values. Today I am suggesting much larger plans. Not child plans but plans that will be worth more when they are adults and need to protect their own children. $50,000, $100,000 or even $250,000 plans are not unusual and very reasonable from top rated Insurance Companies. Starting at about $20.
As always an experienced Life Insurance Agent is your best source of information. One that has more than one or two companies or types of insurance.