Child Life Insurance

Child life insurance is a form of permanent life insurance that insures the life of a minor. It is usually purchased to protect a family against the sudden and unexpected costs of a child’s funeral or burial^[1] and to secure inexpensive and guaranteed insurance for the lifetime of the child^[2]. It offers guaranteed growth of cash value, which some carriers allow to be withdrawn (collapsing the policy) when the child is in their early twenties^[3]. Child life insurance policies typically offer the owner the option to purchase, or in some cases obtain additional guaranteed insurance when the child reaches maturity^[4].

Child life insurance policies typically^[5][6]:

• Are issued with face values between $5,000 and $50,000.
• Are always issued without a required medical examination.
• Have zero investment and zero interest rate risk associated with cash value growth.
• Provide insurance coverage for a designated beneficiary.

Child life insurance should not to be confused with Juvenile Life Insurance, which is issued with much larger face values (normally $100,000 -$10,000,000) and is generally purchased for college savings, lifetime savings, estate planning and guaranteed insurability.^[7].

Child life insurance has been criticized for causing a motive for murder of insured children. 45 coroners have stated that child life insurance is a motive to murder.[1]

References

1. ^ http://www.netquote.com/life-insurance/understand/child-life-insurance-secure.aspx
2. ^ http://www.compuquotes.com/Child-Life-Insurance.html
3. ^ http://www.gerberlife.com/gl/view/guide_products/growup/index.jsp
4. ^ http://www.gerberlife.com/gl/view/guide_products/esp/index.jsp
5. ^ http://www.buy-globe-life.com/?utm_source=google&utm_medium=ppc&utm_campaign=globe&gclid=CIaBzMPkiaUCFQRM5QodvhfVMQ
6. ^ http://www.gerberlife.com/gl/view/index.jsp
7. ^ http://juvenilelifeinsurance.org/what_is_it.html