What Is child life insurance?

Child life insurance provides a death benefit should the child pass away while the policy is in effect. Generally, permanent policies are available for children, but you can usually add a children’s term rider to your policy to provide a small amount of coverage for all of your children, and many companies let you convert the term rider to a permanent policy when the child becomes an adult. Most people buy child life insurance to cover burial expenses in the event their child dies as a minor or to lock in a low rate for the child’s life and protect their insurability.

What is a children's term rider?

A children’s term rider typically provides coverage for all current and future dependent children of the insured, including adopted and step-children, up to a certain age. The coverage limits generally max out at $25,000, but some companies allow you to convert the coverage to a permanent policy worth up to five times the amount of the rider once your child reaches adulthood. Depending on the company you choose, you may be able to add a children’s term rider to an adult term, whole life , or universal life policy.

Is life insurance for a child worth it?

If a child’s funeral expenses can be covered out of an emergency fund, a child’s life insurance policy may not be necessary. If your goal is to ensure that your child can get coverage for their family when they grow up, regardless of what health issues arise along the way, you might consider either a permanent policy or a convertible children’s term rider. Consider your options carefully—while you may be able to lock in a lower rate for your child by starting with a permanent policy, you may pay more in premiums over time. A convertible children’s term rider is usually inexpensive and you can let your children decide whether they want to convert the coverage later on.

How much is life insurance for children?

Life insurance for children tends to be more affordable than life insurance for adults, either as a whole life policy or a term life insurance rider. A policy holder should expect to pay $5 to $10 for a $10,000 policy with a choice of payouts between $5,000 to $50,000.

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5 Best Children’s Life Insurance Companies of 2024

Protective is the best overall life insurer for children

Lindsay Frankel

Updated April 12, 2023

Reviewed by

Samantha Silberstein

Fact checked by

Hans Daniel Jasperson

Some families may decide to purchase life insurance for children to lock in a low rate and protect their insurability while providing for burial expenses in the event of their death. Children’s life insurance is also sometimes marketed as a college savings vehicle but is typically inferior to other savings plans. There are a couple of ways to insure a child. You can add a children’s life insurance rider to a term or permanent policy that you purchase for yourself, or you can buy a separate policy in the child’s name. The best children’s life insurance companies offer both options and let you convert a children’s term rider to permanent coverage once the child becomes an adult. The best way to get a quote and apply for a child's life insurance policy is to call an agent directly. To generate our list of top insurers for children's life insurance, we examined 91 life insurance companies and evaluated them based on the following categories: customer education, application, and online service features (32% of score); policy types, features, and riders (29%); financial stability (17%), customer satisfaction ratings (15%), and cost (8%).

Best Children’s Life Insurance Companies of 2024

Best Overall: Protective
Best for Customer Satisfaction: Nationwide
Best for Living Benefits: Mutual of Omaha
Best for Most Policy Types: Penn Mutual
Best for Financial Stability: State Farm Life Insurance

Companies reviewed

Features considered

5,005

Data points analyzed

We collected over 5,000 data points from 91 life insurance companies to measure financial stability, customer satisfaction, product and feature variety, and the overall buying experience. We then evaluated each company based on 55 metrics to develop unbiased, comprehensive reviews.

Read our Full Methodology

with our partner Covr Financial from multiple providers before buying.

Best Overall : Protective

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A
Accepts Credit Cards: Yes

Get A Quote

Why We Chose It

Protective offers a wide array of options for children’s coverage and it has the highest term conversion limits for children and offers the most affordable term policies of the companies we reviewed, making it our choice for best option overall.

Pros & Cons

Pros

Convertible children’s term rider
Paid-up benefits if insured dies before children
Variety of policy options for children

Cons

Poor J.D. Power ranking

Overview

With Protective’s children’s rider, you can get up to $25,000 in coverage for all current and future children aged 15 days to 18 years under one rider. When your children reach age 25, you’ll have the option to convert the rider to a permanent policy worth up to five times the rider’s face amount. Protective also offers whole, universal, and indexed universal life policies for children if you prefer permanent coverage.

Protective has an A+ (Superior) financial strength rating from AM Best, which indicates a superior ability to pay claims. And while the company ranked only 16th out of 21 companies in the J.D. Power 2021 U.S. Individual Life Insurance Study, the insurer received fewer complaints than expected with the National Association of Insurance Commissioners (NAIC) over the last three years, given its market share.

Protective also earns top spots in our reviews of the best life insurance companies, best term life insurance companies, and best life insurance companies for people over 50.

To learn more about Protective, read our full Protective Life Insurance Review.

Read the Full Protective Life Insurance Review

Best for Customer Satisfaction : Nationwide

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
Accepts Credit Cards: Yes

Get A Quote

Why We Chose It

Nationwide receives high marks for customer satisfaction and financial stability and it offers a variety of options for children’s life insurance. The insurer has had far fewer complaints than expected over the last three years and also ranks second out of 21 insurers in the J.D. Power 2021 U.S. Individual Life Insurance Study, making it the top pick for customer satisfaction.

Pros & Cons

Pros

Convertible children’s term rider
Far fewer complaints than expected
Ranked second for customer satisfaction by J.D. Power
Offers children’s whole, term, and universal life insurance
Policies include three living benefits

Cons

Must contact Nationwide for quote

Overview

You can get whole or universal life insurance coverage for children or add a children’s term rider to your term or permanent policy through Nationwide. The rider covers eligible children from 15 days old until age 22 or the time of marriage. Once your child becomes an adult, they can convert coverage to their own permanent policy.

Nationwide also receives an A+ (Superior) financial strength rating from AM Best and includes three living benefits for chronic illness, critical illness, and terminal illness with most policies. These are a few of the reasons it’s our top pick for best life insurance companies and best whole life insurance companies.

Maybe the only downside is that the company’s term policies aren’t as affordable as some other providers. However, it’s worth comparing pricing for children’s standalone policies with other insurers.

Read the Full Nationwide Life Insurance Review

Best for Living Benefits : Mutual of Omaha

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
Accepts Credit Cards: Yes

Get A Quote

Why We Chose It

Mutual of Omaha offers a variety of riders, including uncommon ones such as a disability income rider and a return of premium option for term coverage. Plus, most policies have at least two living benefits, and Express Term and Express IUL policies have three—for terminal, critical, and chronic illnesses. This is one reason it’s a top pick for best term life insurance companies and our pick as the best for living benefits.

Pros & Cons

Pros

Convertible children’s term rider
Two attractive riders with children’s whole life
Wide array of available riders
Most policies include living benefits

Cons

Maximum $10,000 face amount on children’s riders
Only whole life insurance for children

Overview

At Mutual of Omaha, a customer can buy standalone whole life coverage for children and add a guaranteed insurability rider and/or a waiver of premium rider to the children’s whole life policy. There are also some no-medical-exam life insurance options, including the children’s whole life policy.

Should you choose a dependent children’s rider, you can get up to $10,000 in coverage for all dependent children aged 15 days through 20 years. It expires when the base policy terminates, the insured reaches 65, or the youngest child reaches 23. Like many other top companies, Mutual of Omaha lets you convert the children’s rider to a permanent policy with a face amount of up to five times the rider coverage amount. Note that this is a relatively low face amount compared to insurers that offer up to $25,000 in coverage.

For more information, read our full Mutual of Omaha Life Insurance review.

Read the Full Mutual of Omaha Life Insurance Review

Best for Most Policy Types : Penn Mutual

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
Accepts Credit Cards: Yes

Get A Quote

Why We Chose It

Penn Mutual offers the most options for permanent coverage for children of our top-rated companies. You can purchase universal life, variable universal life, indexed universal life, whole life, and one-year term policies for your children. The one-year term policy is convertible to a permanent policy, so it’s a good option for temporary needs or if you can’t currently afford the premium for permanent coverage. Since Penn Mutual provides the widest variety of coverage options, it ranks as our best pick for most policy types.

Pros & Cons

Pros

Convertible children’s rider available
Far fewer complaints with the NAIC than expected
High-coverage no-med-exam policies for eligible applicants
Some policies eligible for dividends

Cons

No online quote or application

Overview

You can get up to $25,000 in coverage with a children’s rider on your own policy at Penn Mutual. (This is the highest amount offered by our top children’s life insurance companies other than Protective.) With this option, your children can convert to a permanent policy for up to five times the value of the rider on the policy anniversary closest to their 23rd birthday.

Plus, the company has an outstanding history of paying dividends to eligible policyholders: it’s paid them consecutively since 1847. For this reason, it’s our pick for best whole life insurance company for dividends. It’s also a top pick for the best no-medical-exam life insurance companies because it has the highest coverage limits we’ve seen. Some healthy applicants are eligible to apply for up to $7.5 million in coverage without a medical exam.

Penn Mutual receives high praise for financial strength, with an A+ (Superior) grade from AM Best, and has had far fewer complaints with the NAIC than expected over the last three years given its size. However, you can’t get a life insurance quote or apply for term coverage online.

Read the Full Penn Mutual Life Insurance Review 2023

Best for Financial Stability : State Farm Life Insurance

Investopedia's Rating

3.7

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A++
Accepts Credit Cards: Yes

Get A Quote

Why We Chose It

While all of our top picks have superior financial strength ratings, State Farm takes the highest possible grade from AM Best with an A++ (Superior) rating, making it the best choice for financial stability.

Pros & Cons

Pros

Children’s convertible term rider available
Highest financial strength rating from AM Best
Top-ranked for customer satisfaction

Cons

Below average pricing on term coverage
Few other customization options
Must speak with an agent to apply for term

Overview

The State Farm children’s rider also provides coverage up to age 25 or when you turn 65. You can purchase up to five times the amount of the child’s term rider and convert it to permanent coverage once your child becomes an adult.

State Farm also offers universal and whole life policies for children and is highly ranked for customer satisfaction. It was the top insurer in the J.D. Power 2021 U.S. Individual Life Insurance Study—one reason it earned a top spot for customer satisfaction in our review of the best whole life insurance companies. Furthermore, the company had far fewer complaints with the NAIC over the last three years than expected based on its size.

Since State Farm’s term coverage is more expensive than its competitors (based on our review of 32 term life insurance companies), it may be best for families who want permanent coverage for their children or permanent coverage for themselves with a children’s rider. If you want a robust suite of living benefits, you may be better served elsewhere.

Read the Full State Farm Life Insurance Review

	Best For	AM Best Rating AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.	Term Life Sample Cost	Policy Types	Accepts Credit Cards		Reset All
Protective	Best Overall	A	$22.92/month	Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole	Yes	Get A Quote	Hide, not for me
Nationwide	Best for Customer Satisfaction	A+	$26.25/month	Final Expense, Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole	Yes	Get A Quote	Hide, not for me
Mutual of Omaha	Best for Living Benefits	A+	$28.38/month	Final Expense, Indexed Universal (IUL), Term, Universal (UL)	Yes	Get A Quote	Hide, not for me
Penn Mutual	Best for Most Policy Types	A+	$23.92/month	Term, Universal (UL), Variable Universal (VUL), Whole	Yes	Get A Quote	Hide, not for me
State Farm Life Insurance	Best for Financial Stability	A++	$35.24/month	Final Expense, Term, Universal (UL), Whole	Yes	Get A Quote	Hide, not for me

Quotes above are examples of what a 40-year-old in excellent health might pay for a 30-year $250,000 policy. Get life insurance quotes from multiple companies to find your best rate.

Final Verdict

Protective wins as best overall because it offers the maximum coverage amount on its children’s term rider, has excellent term pricing, and offers comprehensive coverage options for both children and adults. The variety of options and affordable term policies make life insurance for children more accessible, finding a policy that works best for you more likely. Other companies might rank higher on one aspect of their plan, but Protective ranks best due to the multiple coverage choices, high term conversation limits, and bang for your buck. However, if you're looking for something specific, consider Mutual of Omaha for living benefits or Nationwide for customer satisfaction.

More Ratings of Top Life Insurance Companies

Frequently Asked Questions

What Is child life insurance?

Child life insurance provides a death benefit should the child pass away while the policy is in effect. Generally, permanent policies are available for children, but you can usually add a children’s term rider to your policy to provide a small amount of coverage for all of your children, and many companies let you convert the term rider to a permanent policy when the child becomes an adult. Most people buy child life insurance to cover burial expenses in the event their child dies as a minor or to lock in a low rate for the child’s life and protect their insurability.
What is a children's term rider?

A children’s term rider typically provides coverage for all current and future dependent children of the insured, including adopted and step-children, up to a certain age. The coverage limits generally max out at $25,000, but some companies allow you to convert the coverage to a permanent policy worth up to five times the amount of the rider once your child reaches adulthood. Depending on the company you choose, you may be able to add a children’s term rider to an adult term, whole life, or universal life policy.
Is life insurance for a child worth it?

If a child’s funeral expenses can be covered out of an emergency fund, a child’s life insurance policy may not be necessary. If your goal is to ensure that your child can get coverage for their family when they grow up, regardless of what health issues arise along the way, you might consider either a permanent policy or a convertible children’s term rider. Consider your options carefully—while you may be able to lock in a lower rate for your child by starting with a permanent policy, you may pay more in premiums over time. A convertible children’s term rider is usually inexpensive and you can let your children decide whether they want to convert the coverage later on.
How much is life insurance for children?

Life insurance for children tends to be more affordable than life insurance for adults, either as a whole life policy or a term life insurance rider. A policy holder should expect to pay $5 to $10 for a $10,000 policy with a choice of payouts between $5,000 to $50,000.

Methodology

Based on third-party consumer studies, like J.D. Power’s 2021 U.S. Life Insurance New Business Study and the 2021 Insurance Barometer Study by Life Happens and LIMRA, we determined the factors that parents and guardians are most concerned with when buying life insurance for their children. We then evaluated more than 91 life insurance companies based on more than 50 data points, including ratings for the following:

Cost
Policy types and features
Riders or endorsements
Financial strength
Customer satisfaction
Customer complaints
Business age
No-medical-exam options

We selected the companies with the best financial strength ratings, the lowest number of consumer complaints, and the broadest range of options and tools. We weighted each category as follows:

Customer education, application, and online service features: 32%
Policy types, features, and riders: 29%
Financial stability: 17%
Customer satisfaction ratings: 15%
Cost: 8%

We then looked at which of the top-scoring companies offer children’s life insurance policies and children’s term riders, as well as the features associated with each. For example, we considered the maximum amount of coverage available with a children’s term rider, whether it could be converted to permanent coverage, and which types of policies are available to children. We ranked companies based on features such as these to select the optimal life insurance providers for children.

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