Mortgage Advisor & Director
Former Senior Protection Advisor
Financial support during a difficult time can ease concerns when finances aren't necessarily your priority. Life insurance for children offers financial relief when money is probably the last thing on your mind. Here we explain how to get cover for children, where you can get quotes and the best way to get expert advice.
Are there life insurance policies for children?
Yes, life insurance policies specifically designed for children do exist. However, a more common approach usually involves adding children onto an adult policy or setting up a family policy.
Life insurance for children can provide financial support in the event your child gets sick or passes away. These policies can help with funeral expenses, medical bills, or simply provide a financial cushion to allow your family space to deal with the loss.
How do they work and what are the options?
In most cases, a life insurance policy for children will be an add-on to your existing policy rather than standalone cover. Here are two options to consider:
- Critical illness cover (CIC): This can provide quite comprehensive cover if your child gets sick or they pass away and can usually be arranged quite easily. Sometimes it’s included as a standard part of your CIC but you’ll need a specific children’s CIC policy with some insurers.
- Whole-of-life insurance: A whole-of-life policy means they’re covered for their entire life (even as they progress into adulthood), as long as you maintain the premiums. You’ll usually need to arrange this through a broker with a specialist insurer who has the flexibility to tailor the underwriting process.
If the worst was to happen, you or any listed beneficiaries would receive a payout. The size of the payout depends on the policy and the circumstances.
What happens to your child's policy when they become adults?
Some policies cover children until they are 18, but others will extend coverage further if certain conditions are met; such as the child is still living in your household or is in full-time education.
Certain policies will give you the option to convert into an adult policy. However, this could involve increased premiums or additional medical underwriting. Once they reach adulthood, it’s worth discussing whether you will keep making the premium payments or if this responsibility will be passed onto them.
Is life insurance for children worth it?
In this worst-case scenario, money will probably be the least of your concerns. However, having life insurance in place for your children could, at the very least, mean that you won’t have to be distracted by financial concerns at a time when you have more important things to take care of.
It’s different to an adult policy because children aren’t likely to be contributing to household finances. But, you may find yourself in a position where you need to stop working (even temporarily) to deal with everything. So a life insurance policy for children could be used to replace the lost income of you or your family.
The more positive side is that a life insurance policy for your child from an early age is a useful way to support their future family, even if you’re not around. It saves them from approaching this slightly negative topic themselves and is another way you can potentially look after your children as they move through life.
Best life insurance companies for child coverage
The best insurer to use will depend on your personal circumstances and how much coverage you need, but here are examples of major providers that offer some sort of children's life insurance:
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Legal & General: L&G offers children’s critical illness cover (CIC). If you take out a policy and add CIC, this automatically covers two children until they’re 18 (or 21 if in full-time education). It includes £10,000 child accident hospitalisation benefit and £4,000 child funeral benefit.
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Scottish Widows: If you add CIC onto your policy, this also includes children’s CIC and children’s life cover. The children’s CIC can payout £30,000 or 50% of your main policy (whichever is lower) and the children’s life cover has a one-off payment of £10,000 up until 30 days from their 22nd birthday.
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Liverpool Victoria (LV): You can add children’s critical illness cover onto your policy for an extra fee. The payout is £35k or 50% of the main policy (whichever is lower) and £5k towards funeral costs. Children have cover until their 23rd birthday, at which point they can activate a ‘Junior Option’ to start their own policy without going through medical underwriting.
To get a standalone life insurance policy for your children to use throughout life, you may have to speak with smaller, niche insurers via a broker. Also if you want coverage for special needs or specific conditions like cancer or diabetes - your broker can show you appropriate options.
How to get a quote and buy life insurance for children
It can be difficult to get quotes for standalone life insurance policy for children without approaching a specialist insurer that has the flexibility to create bespoke policies using a tailored underwriting process. So, the best way to get life insurance quotes for children is through an expert broker.
A broker can assess your circumstances and introduce you to the most suitable insurer. It’s always worth having a quick discussion with an expert advisor first because they can help determine exactly what type of life insurance policy and coverage you and your family need based on your lifestyle.
If you want to have a free, no obligation initial chat with one of our experienced life insurance advisors you can get started here:
Connect with a life insurance specialist today
Adding children to an existing policy
This is a common way to get coverage for children. However, it depends on the insurer you’re using and the specific policy you have. Some insurers include cover for children as standard if you add CIC onto your policy. But, some will require that you get a specific add-on for children.
Life insurance options for young adults
Although many young adults with no dependents might not consider getting life insurance, it can be an excellent time to set up a policy. Some insurers will be keen to offer policies to young and healthy adults for a competitive price.
Of course, another scenario is that a young adult might already have children, dependants, or financial responsibilities. Taking out life insurance in the earlier stages of adulthood instead of waiting for potential health issues to develop at an older age can often result in the best value in terms of premiums.
Why choose Teito for your life insurance needs?
Finding the right life insurance policy for your children can be slightly complex and sometimes requires a bit more effort. Your child might end up keeping this policy for their whole life, and you want to be sure they can rely on it when they need it most.
Our expert brokers can assess your needs and help you find the most suitable life insurance policy that’s tailored to your family’s circumstances. They also have direct relationships with insurers, meaning they can get you quotes not advertised elsewhere.
Here are some more of the reasons people choose us to find them the best life insurance policy for their children:
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We can get you tailored quotes in minutes
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Our advisors have 5-star ratings on leading review sites
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Your first chat is free with no obligation to proceed
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Access to the best life insurance children's plans
Ready to take advantage of a free, no-obligation chat with an advisor who specialises in life insurance for children? Get started here.
FAQs
Yes, this is possible but your options may be limited and it depends on the insurer. For example, LV will provide cover for conditions present at birth but Legal & General won’t.
It may also depend on the type and severity of the condition. For example, a serious illness like cancer may be viewed differently compared to diabetic children - but a broker can explain all your options.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.