Real rates by age, carrier comparison, and a straightforward answer on whether it makes sense for your family.
Children's whole life insurance is a permanent policy purchased by a parent or grandparent for a child, typically ages 0–17. It locks in lifelong coverage at a child's rate, builds cash value, and guarantees future insurability regardless of health changes. Monthly premiums start around $5 depending on age and coverage amount. Legacy Insurance Group compares multiple carriers — including options starting at $5,000 in coverage — so families can find a plan that fits their budget.
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You're probably wondering why anyone would buy life insurance on a kid.
It's a fair question. Kids don't earn income. Nobody depends on a five-year-old's paycheck. And the financial guru you follow online probably told you it's a waste of money.
Here's the thing — parents who understand the value of life insurance know the best time to lock it in is when you're young and healthy. That's why they start their kids early. A policy purchased today locks in the lowest rate your child will ever qualify for, and with certain carriers, the coverage automatically doubles at age 18 — same price, no health questions.
Children's whole life insurance locks in your child's ability to have coverage for life, at a rate that was set when they were young and healthy. It's about making sure the door is always open — no matter what life brings.
Let me walk you through what it actually does, what it costs with real numbers, and how to decide if it makes sense for your family.
Children's whole life insurance is a permanent life insurance policy that a parent or grandparent buys for a child. It doesn't expire, the premium never goes up, and it stays in force for the child's entire life as long as premiums are paid.
Here's what makes it special:
We'll be straight with you. If you're buying this purely as an investment, there are better options. A 529 plan will outperform the cash value. An index fund will give you better returns over 20 years.
But none of those can do what this policy does.
Health changes as we get older. And the older you get, the harder and more expensive it becomes to qualify for life insurance. A children's whole life policy takes that worry off the table while your child is young and healthy.
Here's what a children's whole life policy does that no savings account can:
That's what this is really about. Your child qualifies right now for the lowest rate they'll ever see, and buying today means they'll always have the option to get more coverage down the road — guaranteed.
Guaranteed insurability means your child has the right to buy more life insurance in the future — without answering health questions, without a medical exam, and without the possibility of being turned down.
Here's a real example of how that works.
Say you buy your daughter a $25,000 policy at age 3. She grows up, goes to college, starts her career. Somewhere along the way, her health changes — maybe a diagnosis, maybe a condition that runs in the family. Without a guaranteed insurability rider, she might not qualify for more life insurance. Or she'd pay much higher rates.
But because she has that rider from her children's policy, she can buy more coverage at standard rates. No health questions. No denial. That right was locked in when she was three years old.
Both carriers we work with include this. Here's what each one offers:
Your child can buy additional coverage — up to the coverage amount in force at age 18 — at these times:
Up to 5 purchases total.
Your child can buy additional coverage — up to the original face amount — at these times:
Up to 5 purchases total.
One important thing to understand: the additional coverage isn't free. When your child exercises this right at age 25 or 30, they'll pay a new premium based on their age at that time. But the point isn't free coverage — it's that they can't be turned down. No matter what's happened to their health between now and then.
You're not paying for extra coverage today. You're paying for the guarantee that they'll always be able to get it.
Monthly premiums range from about $5 to $60, depending on the child's age, the carrier, and how much coverage you choose. Here are live rates from two carriers Legacy Insurance Group works with.
| Child's age | $10,000 | $25,000 | $50,000 |
|---|---|---|---|
| Newborn | $7.39/mo | $17.76/mo | $35.53/mo |
| Age 1 | $7.63/mo | $18.32/mo | $36.63/mo |
| Age 5 | $8.81/mo | $21.22/mo | $42.43/mo |
| Age 10 | $10.68/mo | $25.67/mo | $51.34/mo |
| Age 14 | $12.43/mo | $29.89/mo | $59.79/mo |
Ages 0–14. Coverage automatically doubles at age 18 at the same price. Credit card payments are about 10% higher.
| Child's age | $10,000 | $25,000 | $50,000 |
|---|---|---|---|
| Newborn | $4.61/mo | $10.02/mo | $19.04/mo |
| Age 1 | $4.61/mo | $10.02/mo | $19.04/mo |
| Age 5 | $5.43/mo | $12.08/mo | $23.17/mo |
| Age 10 | $6.15/mo | $13.87/mo | $26.75/mo |
| Age 14 | $6.15/mo | $13.87/mo | $26.75/mo |
| Age 15 | $7.75/mo | $17.87/mo | $34.75/mo |
| Age 17 | $7.75/mo | $17.87/mo | $34.75/mo |
Ages 0–17. Coverage stays at the amount you purchase. Also available starting at $5,000. Not available in Washington state.
A few things to notice:
The best policy is the one your family can actually keep paying for. A $10,000 Mutual of Omaha policy at $5 a month is better than a $50,000 Gerber policy that gets cancelled after two years because the payments were too much.
Legacy Insurance Group is independent. That means we compare carriers instead of pushing one. Here's a clear look at both options so you can decide what fits.
Best for families who want maximum long-term value
Best for budget-conscious families or older teens
A few things worth knowing:
Here's a real example using a $50,000 Gerber policy purchased for a 5-year-old. The ACH rate is $42.43 a month.
| Event | Added | Total coverage |
|---|---|---|
| Age 5 — policy purchased | $50,000 | $50,000 |
| Age 18 — automatic doubling | +$50,000 (free) | $100,000 |
| Age 25 — guaranteed purchase | +$100,000 | $200,000 |
| Gets married — guaranteed purchase | +$100,000 | $300,000 |
| First child born — guaranteed purchase | +$100,000 | $400,000 |
| Age 35 — guaranteed purchase | +$100,000 | $500,000 |
The doubling at 18 is the only part that's free. Every guaranteed purchase after that is new coverage at a new rate based on the child's age at that time. But the key is that none of those purchases require health questions. If your child developed a condition at 16, 22, or 32, it doesn't matter. They still get to buy.
Mutual of Omaha's path looks similar, but each purchase maxes out at the original face amount ($50,000 instead of $100,000), and there's no doubling at 18. The trade-off is lower monthly cost going in.
Yes. And they do — a lot. Grandparents are actually the most common buyers of children's whole life insurance.
Here's how it works: the grandparent is the policy owner and pays the premiums. The grandchild is the insured. At age 21, ownership transfers to the grandchild and they take over payments.
One thing grandparents should know: if something happens to you before the child turns 21, Gerber's payment protection option rider covers all remaining premiums until the child's 21st birthday. The grandchild keeps the coverage even if you're not there to keep paying. Mutual of Omaha offers a waiver of premium if the owner dies, but it only covers a single 90-day period.
Up to six children can be included on one Gerber application, which makes it easy for grandparents with multiple grandchildren.
Some grandparents also carry their own burial insurance or final expense policy to make sure they're not leaving a bill behind. I've talked to grandparents who tell me children's whole life is the most meaningful gift they've ever given. Not the toys, not the birthday money — the life insurance policy their grandchild still has at 40. It's a gift that keeps working long after everything else is forgotten.
Like all whole life policies, children's whole life builds guaranteed cash value over time. The child can borrow against it as an adult for things like college, a car, or a down payment on a home. The cash value grows tax-deferred.
I want to be straight with you about this: the cash value grows slowly. It's not going to make your child rich. It will likely take a decade or more before the cash value equals what you've paid in premiums. If you're looking for an investment vehicle, a 529 plan or custodial brokerage account will do more for you.
Think of the cash value as a savings layer on top of the insurance — not a replacement for actual saving and investing. The insurance is the reason to buy. The cash value is a bonus.
Children's whole life makes sense if your goal is locking in your child's lifelong insurability at today's rate. It's not an investment vehicle — a 529 plan will outperform the cash value. If budget is tight, Mutual of Omaha at around $5/mo beats no coverage at all. If you can afford Gerber and the child is under 15, the automatic doubling at 18 is the strongest value in this category. Either way, the insurance you lock in today will cost a fraction of what the same coverage costs when they're 35.
Is buying life insurance on a child morbid?
Most families who buy children's whole life aren't focused on the death benefit. They're locking in lifelong coverage at the cheapest possible rate and making sure their child can always get more insurance, even if they develop a health condition later. It's a financial decision, not a dark one. You're not betting on something bad happening — you're making sure they're covered no matter what life throws at them.
What happens to the policy when my child turns 18?
With the Gerber Grow-Up Plan, the coverage automatically doubles — a $50,000 policy becomes $100,000 at the same monthly premium. With Mutual of Omaha, the coverage stays the same but the child can buy more through the guaranteed insurability rider at certain life events. With both carriers, the child becomes the policy owner at age 21 and takes over the payments.
What if I can't afford $50,000 in coverage?
Mutual of Omaha starts at $5,000 — that's around $3 to $4 a month. Gerber starts at $10,000 for about $7 to $13 a month depending on age. Something is always better than nothing. You lock in the child's insurability regardless of the amount, and they can buy more later.
Can my child be declined for coverage?
Both carriers use simplified underwriting with limited health questions and no medical exam. Most healthy children qualify. If there's a specific health concern, talk to an agent — there may still be options depending on the situation.
Is children's whole life insurance better than a savings account?
They do different things. A savings account earns interest but doesn't protect insurability. A whole life policy guarantees your child can always have life insurance, even if they get sick at 20 or 30. A savings account can be spent on anything and withdrawn at any time. Cash value in a whole life policy grows slowly and has loan provisions. Most families who buy children's whole life also save and invest separately. It's not one or the other.
How much coverage should I buy for my child?
Most families choose $25,000 to $50,000. With Gerber, those amounts double to $50,000–$100,000 at age 18 and the child can purchase more over their lifetime through guaranteed purchase options. With Mutual of Omaha, coverage stays level but is available at a lower monthly cost. Choose the amount your family can comfortably pay every month for the long term.
My financial advisor says life insurance on kids is a waste of money. Who's right?
If you're buying it as an investment, they have a point — a 529 or index fund will give you better returns. But if you're buying it to lock in your child's insurability while they're young and healthy, that's something no investment account can do. No savings account guarantees your child can get life insurance later if their health changes. It depends on what you're trying to accomplish.
Legacy Insurance Group built a children's whole life rate calculator — the only one of its kind that shows both carriers side by side with live rates. Enter your child's age, pick a coverage amount, and see exactly what it costs. No phone call required, no email, no obligation.
Or call 971-444-6449 to talk it through
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This article was last reviewed and fact-checked on April 20, 2026 by Gilbert Lopez, NPN 16945680. Rates reflect carrier rate charts current as of publication; actual rates and features vary by state and carrier.
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Life insurance products are underwritten by the respective carriers. Legacy Insurance Group is not affiliated with Gerber Life or Mutual of Omaha.
This article is for informational purposes only and does not constitute financial or insurance advice.
