Buying Life Insurance for a Child Under 1 Year Old

The Baby Life Insurance Decision That Shocked My Friends

When I told my buddy Marcus I bought life insurance for my 8-month-old daughter, he nearly spit out his coffee. "For the baby? Bro, she doesn't even pay for her own diapers yet."

I get it. I really do. On paper, it sounds ridiculous. But here's what Marcus didn't know: I wasn't insuring my daughter's life. I was insuring my family's ability to survive if hers ended too soon.

The Reality Parents Don't Want to Face

Let's talk numbers because facts don't care about our feelings. According to the National Funeral Directors Association, the average child's funeral today runs between $6,000 and $10,000. That's not including medical bills from unexpected accidents or illnesses.

Here's a real story: Last year, my neighbor's 11-month-old son passed away from sudden infant death syndrome. They were devastated. They were also broke for months afterward because they had to scrape together $8,500 for expenses while grieving. They started a GoFundMe from their hospital room. A life insurance policy would have covered everything immediately.

The Guaranteed Future Protection

Here's the part insurance agents don't always explain well. When you buy a permanent policy for an infant, you're buying a guarantee.

My cousin Sarah found out she had lupus at 19. Today, at 32, she can't get life insurance anywhere. Denied by every company. If her parents had bought her a small policy when she was born, she'd have coverage for life regardless of her health.

That's what you're really purchasing: the guarantee that your child will never be denied coverage later. Type 1 diabetes, childhood cancer, mental health diagnoses—these things happen, and they make people uninsurable as adults.

The Cash Value Component Nobody Mentions

Whole life policies build cash value over time. By age 18, that policy could have several thousand dollars available. Your child can use it for a first car, college textbooks, or a down payment on an apartment. If they don't use it, it keeps growing for retirement.

The premiums are locked in forever. For roughly $20 to $35 per month, you can secure $25,000 to $50,000 in coverage. That rate never increases, even if your child develops health problems later.

The Bottom Line

You're not buying insurance for a one-year-old. You're buying financial protection for your family against the unthinkable. You're buying guaranteed insurability for your child's entire future. You're buying a savings vehicle that grows while you sleep.

Most parents wait until it's too late. Don't be one of them.

See your child's guaranteed rate in 60 seconds. No obligation, no pressure. Just the facts for your family. Learn more about buying life insurance for a child under 1 year old.

Why Should I Buy Life Insurance on a Newborn Baby?

There are a couple of good reasons. First, the cost of life insurance is a set price for whole life insurance. That means that if you purchase a life insurance policy for let us say, $5 a month for your child, they will still be paying $5 a month when they are 25 years of age.

The price for your child's whole life insurance plan never changes, despite whatever health issues arise in the future.

The other reason is that it is unfortunate but true that some children die. And their funerals can be expensive. If it would be a financial hardship for you to be able to pay for the cost to bury your child, then that $5 a month is a really good hedge.

Also, if there is a health issue that surfaces later in your child's life that could impact significantly your child's health throughout their life, then getting the affordable life insurance coverage before the issue arises may be a true benefit for your child's future. You may get as much as $30,000 of life insurance coverage for around $5 per month which is a great gift of life to provide to your children when they become adults and start their own families.

Here's how to learn more about getting life insurance for your newborn child.