Best Life Insurance for Children

Mutual of Omaha offers flexible, affordable policies for families with children

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Life insurance for children is a contract with an insurance company where, as long as premiums are paid, the company will issue a death benefit upon the child's death. Since many life insurance policies for children are whole life insurance policies, which offer a cash value, parents may want to use a life insurance policy as a savings vehicle for college or other expenses.

The best life insurance policies for children offer a mix of affordability, financial strength, customer satisfaction, ease of qualification, and other features. You might want to consider a life insurance policy for your child if they have special needs, student loans, or if you want to protect their insurability as they get older and keep their premiums low. Here are our top picks for the best life insurance policies for children.

Best Life Insurance for Children in 2021

Best Overall : Mutual of Omaha


Mutual of Omaha

Mutual of Omaha

  • AM Best Rating: A+
  • Issue Ages: Up to 17
Why We Chose It

Mutual of Omaha checks all the boxes with affordable policies, great financial strength, customer satisfaction ratings, and an easy online quote process.

Pros and Cons
Pros
  • Online quote

  • No medical exam

  • Locked-in, affordable rates

  • Guaranteed insurability rider

Cons
  • Coverage amounts limited to $50,000

Overview

Founded in 1909, Mutual of Omaha now provides coverage nationwide. The company has an A+ financial strength rating from AM Best and ranks fifth in the J.D. Power 2020 Life Insurance Study.

Mutual of Omaha offers a children’s whole life insurance policy covering ages 14 days to 17 years with benefit amounts ranging from $5,000 to $50,000. It’s easy to get a quote online, and you can also get help from an agent. Rates are affordable as well: The cost to insure a one-year-old male child with a $25,000 benefit is just $10.02 per month. 

Your premiums are guaranteed to never increase, and you can add a guaranteed insurability rider that would allow your child to purchase additional coverage without underwriting at certain life milestones. There’s also a potential cash value that grows over time, which you can borrow against to meet financial needs. 

Read the full Mutual of Omaha life insurance review

Best for Whole Life Coverage : American Family


American Family

American Family

  • AM Best Rating: A
  • Issue Ages: Not stated
Why We Chose It

American Family’s DreamSecure life insurance products for children have higher coverage amounts than what other providers offer, along with a flexible plan that lets you add coverage later on.

Pros and Cons
Pros
  • A variety of coverage options for children

  • Higher coverage amounts than other policies

  • Online tools

Cons
  • Not rated in J.D. Power’s 2020 Life Insurance Study

  • Not many customer reviews available online

  • Not available in all states

American Family offers a whole life insurance policy for children that you can pay in 10 or 20 years for amounts ranging from $25,000 to $75,000. They also have a flexible life insurance policy for higher coverage amounts that allows you to change your premium and add more coverage later on, but you’ll need to talk to an agent for a quote. 

The cost to insure a one-year-old male child with a $25,000 death benefit is $20/month paid over 20 years, and the policy accumulates cash value. There’s also a children’s rider available on their whole life policies for adults, which provides $15,000 in coverage. 

Founded in 1927, the company has an A financial strength rating from an AM Best.

Read the full American Family insurance review

Best for Term Coverage : State Farm


State Farm Insurance

 State Farm Insurance

  • AM Best Rating: A++
  • Issue Ages: Up to 75
Why We Chose It

State Farm offers the most attractive family life insurance options with a children’s rider on adult term policies that can be converted to permanent life insurance later.

Pros and Cons
Pros
  • Excellent financial strength and customer satisfaction ratings

  • No medical exam required

Cons
  • No separate life insurance policies for children

  • Coverage amount limited to $20,000

Overview

State Farm provides several different affordable term life insurance options. For instance, starting at age 18, you can also purchase up to five times the initial amount of coverage for your child, and at age 25, you can convert the term coverage to a permanent policy for your child.

Adding the children’s rider to a 20-year term policy costs $8.70 for $20,000 in coverage and applies to each child in your family. Newborns in your family will be covered once they reach 15 days of age. The coverage lasts until age 25 or until the insured reaches age 65, whichever happens first. This provides a greater length of coverage than most policies. 

You can get a quote online for their term policies, or you may choose to contact an agent.

 Founded in 1922, State Farm offers coverage nationwide, with excellent term options for families. The company came in first in J.D. Power’s 2020 Life Insurance Study and has the highest possible financial strength rating (A++) with AM Best.

Read the full State Farm life insurance review

Best for Convenience : Globe Life


Globe Life

 Globe Life

  • AM Best Rating: A
  • Issue Ages: Up to 80
Why We Chose It

Globe Life offers competitively-priced whole life insurance policies for children with no medical exam, an online quote, and a quick approval process.

Pros and Cons
Pros
  • No waiting period

  • Quick online quotes and approvals

  • Excellent customer satisfaction ratings

Cons
  • Limited to $30,000 in coverage

  • More complaints than average

Overview

It’s easy to get a custom quote in minutes on the Globe Life website or speak to an agent, and Globe Life is known for fast approvals. There’s no waiting period either, so full coverage starts the first day. And it’s easy to manage your policy online, making Globe Life a top choice for convenience. 

Rates are affordable as well: The cost to insure a one-year-old child with a $25,000 benefit is $8.81 per month, after the first-month introductory rate of $1. Rates are locked in for life. Coverage amounts range from $5,000 to $30,000 for children and only go up to $100,000 for adults. 

Globe Life was founded in 1951 and issues policies in most states. The company ranked second in J.D. Power’s 2020 Life Insurance Study and has an A financial strength rating with A.M. Best. However, Globe Life had about three and half times the average number of complaints for a company of its size in 2020, according to the National Association of Insurance Commissioners (NAIC).

Read the full Globe life insurance review

Best for Long-Term Saving : Gerber Life College Plan


Gerber Life Insurance

 Gerber Life Insurance

  • AM Best Rating: A
  • Issue Ages: Up to 17
Why We Chose It

The Gerber Life College Plan is an endowment life insurance policy that combines adult life insurance with a college savings component for your child, and your child is guaranteed to receive a payout at the end of the term.

Pros and Cons
Pros
  • Provides a guaranteed payout plus adult life insurance

  • Online quotes available

Cons
  • Lesser returns than a 529 plan

  • Customer service reviews are difficult to find

Overview

If you want a guaranteed payout when your child reaches college age, the Gerber Life College Plan is one option for long-term saving. While it won’t yield as high of returns as a tax-advantaged 529 plan, you might prefer the guaranteed payout if you’re risk-averse.

For a 35-year-old father of a one-year-old child, the estimated premium is $40/month for 17 years, which results in a guaranteed $10,000 payout for your child. Gerber Life will also pay the full benefit amount if you die before the policy matures. And since life insurance isn’t included in financial aid calculations, the benefit won’t reduce the amount of aid available to your child. 

It’s easy to get a quote and apply for coverage online, or you can call an agent for more information.

The provider has been around since 1967 and issues life insurance policies nationwide. While there are few customer service reviews available online for Gerber Life, the company has a lower-than-average number of complaints for its size, according to the NAIC, and an A financial strength rating from AM Best.

Read the full Gerber life insurance review

Best for College Students : Haven


Haven Life

 Haven Life

  • AM Best Rating: A++
  • Plans: 1
  • Issue Ages: Up to 64
Why We Chose It

Haven offers some of the most affordable rates in the industry on term policies for applicants as young as 20, making it a great option for college students with student loans.

Pros and Cons
Pros
  • Easy online quote and application

  • Affordable term policies

  • Great customer service reviews

Cons
  • No whole life policies

  • Not available for children under 20

  • May require a medical exam

Overview

Haven offers term policies to adults as young as 20. In most states, a Haven Life Plus membership is included, which provides several attractive benefits for college students, including a free fitness app subscription and discounts at CVS MinuteClinic. Term policies also come with an accelerated death benefit. 

Haven launched in 2013, but its policies are underwritten by C.M. Life, a subsidiary of MassMutual, which has been around since 1851 and has an A++ financial strength rating with AM Best.

Read the full Haven life insurance review

Best for Special Needs Children : Banner Life


Legal & General America

 Legal & General America

  • AM Best Rating: A+
  • Plans: 1
  • Issue Ages: Up to 18
Why We Chose It

Banner Life is one of the few insurance providers to offer a child rider with conversion options and without medical questions about the child.

Pros & Cons
Pros
  • No medical underwriting for children

  • Superior financial strength ratings

Cons
  • No separate whole life policies for children

  • Maximum benefit is $10,000

Overview

Banner Life will cover any child with a $10,000 death benefit for just $55 annually when you add the children's rider to your adult life insurance policy. The rider covers all children in your family, including stepchildren and adopted children, until age 25 (or until the insured reaches age 65). At that point, you'll have the option to convert to a permanent life plan. The children's rider is available in all states except New York. 

You can get a term life insurance quote online with Banner Life, or you can contact an agent by phone. The cost of the children's rider stays the same regardless of the insured's health. 

Banner Life was founded in 1949. The company isn't rated by J.D. Power, and there aren't many customer service reviews available online. However, they've had very few complaints in the last few years—well below the average for a company of its size, according to the NAIC. Banner Life also has an A+ financial strength rating with AM Best.

Read the full Banner life insurance review

Final Verdict

In most cases, we don’t recommend taking out an individual life insurance policy on your child, since there are better investment vehicles available, and most adults can get affordable policies once they have dependents and income to protect. However, if you’re extremely risk-averse and want to protect your child under any circumstances, any one of these policies could be a good choice. Mutual of Omaha is our top overall pick for life insurance for children.

Mutual of Omaha features an easy online application process, affordable policies, and excellent financial strength and customer satisfaction ratings. The guaranteed insurability rider also helps your child add coverage without underwriting later on.

Compare Best Life Insurance for Children

Provider  Why We Picked It Coverage Capacity Policy Type Cost Financial Strength (A.M. Best)
Mutual of Omaha Affordable rates and excellent customer satisfaction $50,000 Whole life insurance $10.02/month for a one-year-old child with a $25,000 benefit A+
American Family High coverage amounts available $75,000 Whole life insurance, children’s rider $20/month over 20 years for a one-year-old child with a $25,000 benefit A
State Farm Top rated for customer satisfaction $20,000 Children’s rider $8.70/month for a $20,000 benefit for each child A++
Globe Life Convenient online application and fast approval $30,000 Whole life insurance $8.81/month for a one-year-old child with a $25,000 benefit A+
Gerber Life College Plan Guaranteed benefit at college age $10,000 Endowment life insurance policy $40/month for 17 years for a guaranteed $10,000 benefit A+
Haven Affordable policies for college students $3,000,000 Term life insurance A 10-year term policy costs $10–$20/month for an 20-year-old male with a $250,000 benefit A++
Banner Life No medical underwriting for children’s rider $10,000 Children’s rider $55/year for a $10,000 benefit A+

Frequently Asked Questions

Can You Insure Just a Child?

It’s possible to insure a child with a whole life insurance policy that will pay a benefit if they die and protect their insurability for the future. Mutual of Omaha, Foresters, Globe Life, and American Family all offer whole life insurance policies for children. We weren’t able to find a provider issuing term policies to children under the age of 18. But it’s usually more cost-effective to add a children’s rider to an adult life insurance policy than to purchase a separate policy for a child. 

Do You Need Life Insurance for a Child?

Life insurance is generally intended to cover your income and debts so that your dependents aren’t left with expenses and no income. Since children don’t have income, debts, or dependants, it’s not necessary to get life insurance for a child. However, some parents may consider getting a life insurance policy for a child to protect their insurability. Buying life insurance for your child now means they’ll be able to get an affordable policy even if they’re diagnosed with a health condition later. 

What Is the Best Life Insurance for a Child?

The best life insurance provider for your child will depend on your future financial needs and your child’s current health status. That said, our top choice for the best life insurance for children is Mutual of Omaha. They offer affordable rates and a variety of options for parents. 

Methodology

We evaluated more than two dozen life insurance companies to find those that offered life insurance policies or riders for children. We chose the best eight companies based on affordability, financial strength, customer satisfaction, ease of qualification, and other available features. Preference was also given to providers that would allow children to increase their coverage later on. 

All of the companies we chose offered affordable rates, had great financial strength ratings with AM Best, and offered attractive features that made their policies a good choice for children.

Article Sources

  1. Business Wire. “AM Best Affirms Credit Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries,” Accessed September 16, 2021.

  2. J.D. Power. "Life Insurance Customer Satisfaction Flatlines Despite Pandemic Fears, J.D. Power Finds." Accessed September 16, 2021.

  3. AM Best. “AM Best Affirms Credit Ratings of American Family Mutual Insurance Co., S.I., Its Affiliates and American Family Life Ins. Co.” Accessed September 16, 2021.

  4. AM Best. "AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Most of Its Subsidiaries." Accessed Sept. 12, 2021.

  5. Business Wire. “AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Most of Its Subsidiaries,” Accessed September 16, 2021.

  6. AM Best. "AM Best Affirms Credit Ratings of Globe Life Inc. and its Subsidiaries." Accessed September 16, 2021.

  7. National Association of Insurance Commissioners. "Globe Life & Accident Ins Co National Complaint Index Report." Accessed September 16, 2021.

  8. AM Best. "Gerber Life Insurance Company." Accessed September 16, 2021.

  9. NAIC. "Gerber Life Ins Co National Complaint Index Report." Accessed September 16, 2021.

  10. AM Best. "AM Best Comments on Massachusetts Mutual Life Insurance Co’s Acquisition of American Financial Group Inc’s Life Subsidiaries." Accessed September 17, 2021.

  11. AM Best. "AM Best Affirms Credit Ratings of Legal & General Group Plc and Its Subsidiaries." Accessed September 17, 2021.

  12. National Association of Insurance Commissioners. “Banner Life Ins Co.” Accessed September 17, 2021.