Whole-Life Insurance Policy For Child

Whole-Life Insurance Policy For Child


A child whole life insurance policy is a type of permanent life insurance policy that provides coverage for the child's entire life and also has a savings component that can accumulate cash value over time. Child whole-life policies are generally less expensive than adult policies due to a child's age and health. Children are typically considered to be at a lower risk of death than adults, so the cost of insuring them is usually less. Additionally, children are generally in better health than adults, which also contributes to lower policy costs.


Another reason child whole-life policies are cheaper is the longer time horizon for accumulation. Whole-life policies have a savings component, which allows the cash value to accumulate over time. This cash value can grow significantly over time if the policy is held for a long period. As a child is usually covered for a longer period than an adult, it gives a more significant time for cash value accumulation, adding more potential value to the policy.


Benefits of a child whole life policy include:


  1. Lifetime Coverage: A child's whole life policy provides coverage for the child's entire life.

  2. Cash value accumulation: The policy accumulates cash value over time, providing a savings component that can be used to pay for future expenses such as college or a down payment on a house.

  3. Guaranteed Premiums: The premium for a child's whole life policy is usually guaranteed to remain level for the life of the policy, regardless of the child's age or health status when the policy is issued.

  4. Potential for Dividends: Some whole-life policies may be eligible for dividends, which can be used to increase the death benefit, lower the premium, or accumulate cash value

  5. Potential Tax-Advantaged: some countries have tax advantages for whole-life policies, like tax-deferred growth on cash value, and tax-free withdrawals for certain expenses, among others.

  6. Policy Flexibility: Child whole-life policies may offer flexibility in premium payments and options to borrow against the cash value.

  7. Permanent Coverage: unlike term policies, whole life policies do not expire, and coverage will remain until death, providing a sense of security to the parent/guardian and the child.

It's important to note that Child whole life policies are a long-term investment and generally not considered an immediate need like adult life insurance. It's always recommended to consult with an Insurance Advisor before deciding if it is suitable for your situation and to weigh the risk and benefits. 



Deepak Sharma

Deepak Sharma

Insurance Advisor / WealthGuard


  • My goal is simple, protect what is important to you. I focus my energy on discovering your exposure to risk and building a comprehensive plan to protect you against those risk.