Juvenile Life Insurance

What Does Juvenile Life Insurance Mean?

Juvenile life insurance is a type of life insurance that covers children, typically under the age of 15. It is usually a permanent life insurance policy that includes a savings component. In addition to offering benefits that can cover burial and funeral expenses in the event of an unexpected death, juvenile life insurance can also serve as an investment vehicle.

Insuranceopedia Explains Juvenile Life Insurance

The savings accumulated in a juvenile life insurance policy are typically tax-deferred, making them an appealing option for investors. Once the insured child reaches young adulthood, they can use the accumulated savings to cover expenses such as college tuition or wedding costs. Many juvenile life insurance companies also guarantee that their policies will continue to grow in cash value regardless of fluctuations in financial markets. Because juvenile policies are almost always structured as whole life coverage, the long-term cost behavior tends to track what you’d see in adult whole life insurance rates, just at much lower starting premiums. Parents shopping for a child policy generally look at the same top-rated life insurance companies they’d use for their own coverage, since most major insurers sell juvenile riders or standalone child plans.