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- The insured legally adopts a child.
These dates and conditions may vary depending on the agreed upon terms of your insurance contract.
2. Permanent Life Insurance
Another option for insuring a child is insuring them with a Whole Life or Universal Life insurance policy. Similar to the Child Protection Rider, a whole life policy would provide a payout in the event of the child deaths. A major difference, however, is that a permanent life insurance can accumulate cash value.
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Child life insurance policies can be a smart investment that can have benefits that far exceed the traditional purpose of life insurance. It may not be the right strategy for every family, but ask your advisor if it has a place in your financial plan.
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