When we think of life insurance, it’s usually in the context of adults—parents, homeowners, or business owners who want to provide financial protection for their loved ones. But increasingly, families are also exploring life insurance policies for children.
At first glance, child life insurance might seem unnecessary or even uncomfortable to consider. But when approached with care and clarity, it can offer practical benefits for families who want to plan ahead. In this article, we’ll explore what child life insurance is, why some families choose it, and whether it’s something to consider for your own circumstances.
What Is Child Life Insurance?
Child life insurance is a type of long-term protection policy taken out by a parent or legal guardian to cover a minor. These are typically permanent policies that may include:
- A modest death benefit
- Optional critical illness cover
- Guaranteed future insurability
- In some cases, the potential to build cash value
In the UK, these policies are still relatively niche but are increasingly discussed as part of wider financial planning conversations.
Why Do Some Families Consider It?
1. To Secure Future Insurability
One of the strongest reasons some parents explore life insurance for their child is to protect their future access to cover.
Health conditions can arise later in life, potentially making it difficult—or more expensive—for someone to get life insurance as an adult. Taking out a policy while the child is healthy and young may ensure they have long-term protection regardless of what comes later.
Some policies include guaranteed insurability options, allowing the child to increase cover as they grow older without needing additional medical checks.
2. To Offer Financial Support in a Worst-Case Scenario
No parent wants to imagine losing a child. But if the unthinkable happens, families often face unexpected expenses—funeral costs, medical bills, time off work.
Having a child life insurance policy in place provides some financial breathing room during an emotionally and financially difficult time.
3. To Create a Financial Gift or Legacy
Some parents or grandparents use life insurance as a long-term gift for the child. Certain policies offer a cash value component that may be accessed later in life to help fund milestones like university, a first home, or other financial goals.
This depends on the type of policy and provider, and it’s important to speak with a regulated adviser about whether this is the right route for your family.
Things to Keep in Mind
- Not all families need this type of cover. For many, focusing on protecting income, a mortgage, or adult life cover is the priority.
- These policies are optional, not essential. They should never replace basic financial protection planning for the household.
- Policies vary by provider. Some offer critical illness cover, while others focus on long-term insurability or cash value.
- In most cases, children can be insured with minimal medical checks if they’re healthy at the time of application.
At BSL Protect, we take the time to understand what’s right for you—not just what’s available. Our role is to offer honest, FCA-regulated advice based on your goals, budget, and family needs.
Is It Worth It?
There’s no universal answer. For some families, especially those with a long-term financial plan or concerns about medical history, child life insurance can be a meaningful option. For others, it might not be a necessary step right now—and that’s perfectly okay.
What matters most is that you’re informed, and that any decision you make fits your overall protection plan.
Speak to an Adviser
If you’re considering child life insurance or just want to understand your family protection options, we’re here to help. There’s no pressure—just a friendly conversation about what works for your life.
Contact BSL Protect:
Phone: 0208 314 5658
Email: info@bslprotect.com
Website: www.bslprotect.com
DM us on LinkedIn with the words “Child Cover” and we’ll get in touch.
BSL Protect Limited is an appointed representative of BSL Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA Ref: 816566).
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