President, Lane Independent Agency, Southern California
You can get life insurance on minors and it is a very smart thing to do. If you lock in a rate for a minor, when they are young and healthy, they can keep that rate for the rest of their lives! Buy a permanent policy, build equity over the decades, and the rate will remain incredibly low their entire lifetime. They can even borrow against it for college, a home, or retirement, tax free! Wish more parents and grandparents would see the wisdom of this. Thank you. GARY LANE.
Juvenile Life Insurance is life insurance that is taken out on the life of a child. You can purchase it for your child when they are approx age 15 days old, up to the age when they become an adult. Some companies sell Juvenile Term Life and some sell Juvenile Whole Life. The Term policy does not have cash value, but would cover funeral costs if the child should pass, and can be converted to Whole Life later on. Juvenile Whole Life has cash value that can be used for college or other expenses.
Juvenile life insurance is especially important for those that have trouble saving money. Funeral costs average $8,000 to $12,000 depending on your location. God forbid a child to pass away, but you do want enough to cover their final expenses. Term life on a minor is very inexpensive, whereas a juvenile whole life will cost a few dollars more.
One thing I do with my clients buying life insurance on themselves is to add a child life rider which can give all the children a set face amount (usually $10,000 each) for one low rate usually under $5.00 per month with no limit of children covered. This is one of the most affordable options for families of 3 or more children.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Juvenile insurance was a major trend at one time in the United States. There were millions of policies written on children, most with a face amount well under $5000. They were purchased to pay final expenses and provide a savings program for the child. While no longer common, this would be the motivation today. In some ethnic subcultures, a funeral is extremely expensive. Parents see the purchase of a whole life policy as coverage for the unthinkable, death of a child, and a good start on something that the child will want later.
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One thing I do with my clients buying life insurance on themselves is to add a child life rider which can give all the children a set face amount (usually $10,000 each) for one low rate usually under $5.00 per month with no limit of children covered. This is one of the most affordable options for families of 3 or more children.