Since the start of the COVID-19 pandemic, more people have purchased life insurance. That includes younger people and parents who have bought life insurance policies for children. 

Buying life insurance isn’t just about preparing for the worst. Parents want their children to stay healthy and live as long as possible. A life insurance policy for your child also means looking out for their future and making it easier for them to get life insurance when needed. 

What Is Child Life Insurance? 

A child life insurance policy offers a fixed death benefit in the unfortunate case that a child dies. With this kind of death benefit, parents do not shoulder the end-of-life costs out of pocket. A life insurance policy for a child can mean the difference between affording these costs without concern and draining a family’s finances. 

What Kind of Life Insurance Covers Children in Arizona? 

Life insurance policies for children come in the form of a permanent life insurance policy. There are two ways to get this kind of policy. First, you can get an individual life insurance policy for your child. Alternatively, some insurance companies allow adults to add children and dependents as riders to their policy. 

The details vary within these types of policies based on the insurance company. Most of the time, you can purchase a life insurance policy when your child is about two weeks old. However, the cutoff age is different for every company. Some companies won’t allow you to buy child life insurance after your child reaches their early teen years. With others, the cutoff age is 17, and some allow you to purchase child life insurance up to age 25, since your child can remain on your policy until that point. 

How Long Does a Child Life Insurance Policy Last in AZ? 

The length of time your child’s policy stays active depends on the policy and the insurance provider. Some policies only cover your child up to age 18, while others remain active through age 25. Once your child reaches this age, the policy usually transfers fully to them. 

You can purchase a term or whole life insurance policy for your child. However, child life insurance typically pays out less than adult insurance. An adult life insurance policy often pays hundreds of thousands of dollars when the time comes. On the other hand, child policies can stop at $50,000 or even less in death benefits.  

Who Gets Life Insurance for Their Children? 

A life insurance policy for your child can be cheaper than an adult policy, especially if your child is healthy. Many parents use these policies to lock in cheaper premiums early in their child’s life. Plus, it’s about more than covering potential end-of-life expenses. A child life insurance policy is an investment in the future. 

Child life insurance can help if your child is at risk of certain genetic illnesses or if they have a chronic illness. These factors can make getting life insurance later more expensive or difficult due to guidelines about pre-existing conditions. They may be able to get low premiums in their 20s, too, but a child life insurance policy can also help them get coverage if they work a high-risk job. 

Child life insurance policies are tax-deferred, so you don’t pay any taxes on the policy before you withdraw it. While no one wants to handle end-of-life expenses for their children, a life insurance policy can cover many of those costs to keep you and your family safe in such an event. Plus, if your child already has a medical condition, it may make sense to purchase life insurance, as it guarantees future insurability. 

As with any major financial investment, purchasing life insurance for a child isn’t necessary or right for everyone. If you have a healthy child, it can feel like you’re paying for a policy you’ll never need, creating an extra expense. The policy may have a poor return rate later, so consider that impact and weigh it against the necessity of a child life insurance policy. 

Life Insurance Can Be an Investment in a Child’s Future in Arizona 

If you don’t need to use the policy, your child may be able to use the money later. For example, if the insurance provider allows early access to the policy’s cash value, your child can use it for other expenses, like college tuition or buying a home. As a result, they can reduce the burden of debt related to these events. 

A child life insurance policy can also subject your child to long-term payments when they grow up. Your child may not be able to afford that payment when the time comes for them to age out of the policy. While these considerations may not overshadow the benefits of a child life insurance policy, they are worth considering before you make your decision. 

How Can You Get Child Life Insurance in AZ? 

A parent, legal guardian, or grandparent can buy life insurance for a child. First, talk to an insurer about your policy options and whether your life insurance policy allows you to add a rider. You can also use an insurance agent to get information about different policies and compare them based on your child’s needs and the best rates. 

You can sometimes get child life insurance through an employer. This process varies, but most of the time, if the option is available, you must add them to your policy. The insurer will assess and ask questions about your child’s health, just like with adult insurance. That process will help determine your premiums and payouts for your child. The provider will then walk you through setting up your policy and give you more information on how to get the best policy for your child. 

Get Arizona Life Insurance for Your Child 

Oasis Insurance helps you get the best Arizona life insurance policy for your child. Working with an experienced and knowledgeable insurance agent makes an intimidating process feel more manageable. We can help you find the most affordable policy while giving you the coverage you need. Contact us to get a no-obligation quote for life insurance online, call us at (800) 330-5190 or stop by one of our locations.