For families considering securing a child's future, children's life insurance can be a wise choice. It offers the dual benefits of guaranteeing low premiums from a young age and ensuring eligibility for insurance, alongside covering funeral costs if needed. While it's sometimes suggested as a way to save for college, there are usually better options for education savings.
When it comes to insuring your child, there are two main routes. One option is to include a rider for children's life insurance in your own term or whole life policy. Alternatively, you can set up a standalone policy in the name of your child. Leading insurers provide both choices, with the added advantage of converting the child's term insurance to a whole life policy when they reach adulthood. To inquire or set up a policy, the most effective approach is to speak directly with an insurance agent.
Our selection of the finest insurers for children's life insurance was determined after reviewing 91 companies. We assessed them on several key aspects: educational resources for customers, ease of application, and online services (32% of the total score); diversity of policy options, benefits, and riders (29%); financial robustness (17%); levels of customer satisfaction (15%); and pricing (8%).
2024's Leading Children's Life Insurance Firms
- Best Overall: Protective
- Top in Customer Satisfaction: Nationwide
- Foremost for Living Benefits: Mutual of Omaha
- Most Diverse Policy Options: Penn Mutual
- Unmatched Financial Stability: State Farm Life Insurance
Leading Choice for Children's Life Insurance: Protective
Selection Rationale
Protective stands out for its comprehensive children's insurance options and favorable terms for policy conversion, offering the most cost-effective term policies among those we evaluated. This makes Protective our top recommendation overall.
Pros and Cons
pros:- Option to convert term coverage for children
- Guaranteed benefits if the policyholder passes away before the children
- A range of insurance plans for children
- Lower ranking in J.D. Power customer satisfaction survey
Detailed Analysis
Protective's insurance rider for children allows for coverage of up to $25,000 for all your children, from just over two weeks old to 18 years, under a single rider. When they turn 25, there's an opportunity to upgrade the rider to a permanent policy with up to five times the original coverage amount. Protective also provides various permanent insurance policies for children, including whole, universal, and indexed universal life insurance.
With an A+ (Superior) rating from AM Best, Protective demonstrates a strong capacity for fulfilling claims. Despite a lower position in the J.D. Power 2021 U.S. Individual Life Insurance Study, Protective has seen fewer complaints than average with the National Association of Insurance Commissioners (NAIC) relative to its size over the past three years.
Protective is also recognized as a leader in our assessments of the finest life insurance providers, the best term life insurance options, and the top life insurance choices for individuals over 50.
Top Performer in Customer Satisfaction: Nationwide
Selection Rationale
Nationwide is highly regarded for customer satisfaction and financial solidity, offering diverse children's life insurance solutions. With significantly fewer complaints than anticipated in the past three years and a second-place ranking in the J.D. Power 2021 U.S. Individual Life Insurance Study, Nationwide is our preferred choice for customer satisfaction.
Pros and Cons
pros:- Convertible term insurance rider for children
- Complaints are much less than expected
- High customer satisfaction ranking by J.D. Power
- Availability of whole, term, and universal life insurance for children
- Inclusion of three living benefits in policies
- Quotes are only available through direct contact with Nationwide
In-Depth Overview
Nationwide offers both whole and universal life insurance for children, as well as the option to add a term rider to your existing term or permanent policy. This rider extends coverage to eligible children from 15 days old to either 22 years old or until they marry. Upon reaching adulthood, they can transition to their own permanent policy.
Nationwide also boasts an A+ (Superior) financial strength rating from AM Best and provides three living benefits in most policies for chronic, critical, and terminal illnesses. These features contribute to Nationwide's ranking as a top choice among the best life insurance and whole life insurance companies.
The only potential drawback is that Nationwide's term policies may not be as competitively priced as those of other insurers. Nonetheless, it's advisable to compare the costs of Nationwide's standalone policies for children with those offered by other companies.
Mutual of Omaha: A Premier Choice for Living Benefits in Children's Life Insurance
Reasons for Selection
Mutual of Omaha is recognized for its diverse range of policy enhancements, including unique options like a disability income rider and a term coverage return of premium feature. Most of their policies come with multiple living benefits, and certain plans offer three types—covering terminal, critical, and chronic conditions. This comprehensive coverage is why Mutual of Omaha is highly recommended for term life insurance and is our top pick for living benefits.
Pros and Cons
pros:- Option to convert children’s term insurance
- Two valuable enhancements with children’s whole life insurance
- Extensive selection of policy enhancements
- Inclusion of living benefits in most policies
- Children’s riders capped at a $10,000 face value
- Exclusive focus on whole life insurance for children
Detailed Breakdown
Mutual of Omaha allows customers to purchase individual whole life insurance plans for children, with the option to add a guaranteed insurability rider or a waiver of premium rider. They also offer no-medical-exam life insurance choices, including policies for children.
Choosing a dependent children’s rider provides up to $10,000 in coverage for all dependent children from 15 days to 20 years old. This coverage ends when the primary policy does, when the insured turns 65, or when the youngest child hits 23. Mutual of Omaha also permits the conversion of children’s riders into a permanent policy, up to five times the rider’s value, although this is less compared to other insurers that offer up to $25,000.
Penn Mutual: Leading Provider with the Broadest Range of Policy Types for Children
Reasons for Selection
Penn Mutual stands out by offering the most comprehensive permanent coverage options for children among our top-rated companies. Their offerings include universal life, variable universal life, indexed universal life, whole life, and one-year term policies. The one-year term policy is particularly flexible, as it can be converted to a permanent policy, making it suitable for short-term needs or for those currently unable to afford permanent coverage premiums. Penn Mutual's extensive coverage options earn it the top spot for the most policy types.
Pros and Cons
pros:- Convertible children’s insurance rider
- Significantly fewer complaints than expected
- High-value policies without medical exams for qualifying individuals
- Eligibility for dividends on some policies
- Lack of online quotes or applications
Overview
At Penn Mutual, you can secure up to $25,000 in coverage through a children’s rider on your own policy, which is the highest amount provided by our top children’s life insurance companies, aside from Protective. This coverage allows children to convert to a permanent policy for up to five times the rider’s value when they approach their 23rd birthday.
Moreover, Penn Mutual has a remarkable track record of distributing dividends to eligible policyholders, having done so consistently since 1847. This commitment positions it as the preferred whole life insurance company for dividends. It is also favored for no-medical-exam life insurance due to the substantial coverage limits available. Some healthy applicants may qualify for up to $7.5 million in coverage without undergoing a medical exam.
Penn Mutual is lauded for its financial strength, boasting an A+ (Superior) rating from AM Best, and has received far fewer complaints than anticipated given its market size over the past three years. However, it is important to note that life insurance quotes and applications for term coverage are not available online with Penn Mutual.
State Farm Life Insurance: The Foremost Choice for Financial Reliability
Why It's Our Top Pick
Among all the excellent options, State Farm stands out with the topmost financial strength rating from AM Best, an A++ (Superior). This distinction makes it the most reliable choice in terms of financial stability.
Pros and Cons
pros:- Availability of children’s term rider that can be converted
- Exceptional financial strength rating by AM Best
- Leading position in customer satisfaction surveys
- Term coverage pricing is not as competitive
- Limited options for policy customization
- Requirement to consult an agent for term application
Comprehensive Summary
State Farm's policy for children extends protection up to their 25th birthday or until the policyholder turns 65. You have the option to increase the coverage to fivefold the child’s term rider amount and upgrade it to a permanent plan when your child reaches adulthood.
State Farm is also known for its universal and whole life insurance options for children, earning high marks for customer satisfaction. It clinched the number one spot in the J.D. Power 2021 U.S. Individual Life Insurance Study, contributing to its reputation for customer satisfaction among the best whole life insurance providers. Additionally, State Farm has received significantly fewer complaints than expected with the NAIC in the last three years, considering its market size.
However, State Farm's term life insurance tends to be pricier compared to other insurers, based on our analysis of 32 term life insurance companies. Therefore, it might be more suitable for families seeking long-term coverage for their children or those who prefer adding a children’s rider to their own permanent policy. For those looking for a comprehensive set of living benefits, exploring other insurers may be advisable.
Comparing the Best Children's Life Insurance Companies for 2024.
| Provider | Best Suitability | AM Best Rating | Term Life Sample Cost | Policy Types | Accepts Credit Cards |
|---|---|---|---|---|---|
| Protective | Best Overall | A | $22.92/month | Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole | Yes |
| Nationwide | Best for Customer Satisfaction | A+ | $26.25/month | Final Expense, Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole | Yes |
| Mutual of Omaha | Best for Living Benefits | A+ | $28.38/month | Final Expense, Indexed Universal (IUL), Term, Universal (UL) | Yes |
| Penn Mutual | Best for Most Policy Types | A+ | $23.92/month | Term, Universal (UL), Variable Universal (VUL), Whole | Yes |
| State Farm Life Insurance | Best for Financial Stability | A++ | $35.24/month | Final Expense, Term, Universal (UL), Whole | Yes |
The quotes above are indications of how much a 40-year-old in good health may pay for a 30-year $250,000 insurance. Compare life insurance quotes from different companies to discover the best deal.
Conclusive Assessment
Protective emerges as the leading provider overall due to its extensive coverage on children’s term riders, competitive term pricing, and a broad range of options for both minors and adults. The diversity of choices and cost-effective term policies enhance the accessibility of life insurance for children, increasing the likelihood of finding a suitable policy for your family's needs. While other companies may excel in specific areas, Protective stands out for its combination of multiple coverage options, generous term conversion limits, and overall value.
For those with particular needs, Mutual of Omaha is recommended for its living benefits, and Nationwide is distinguished for its customer satisfaction record.