Child life insurance is a form of permanent life insurance that insures the life of a minor. It is usually purchased to protect a family against the sudden and unexpected costs of a child’s funeral or burial[1] and to secure inexpensive and guaranteed insurance for the lifetime of the child[2]. It offers guaranteed growth of cash value, which some carriers allow to be withdrawn (collapsing the policy) when the child is in their early twenties[3]. Child life insurance policies typically offer the owner the option to purchase, or in some cases obtain additional guaranteed insurance when the child reaches maturity[4].
Child life insurance policies typically[5][6]:
Child life insurance should not to be confused with Juvenile Life Insurance, which is issued with much larger face values (normally $100,000 -$10,000,000) and is generally purchased for college savings, lifetime savings, estate planning and guaranteed insurability.[7].
Child life insurance has been criticized for causing a motive for murder of insured children. 45 coroners have stated that child life insurance is a motive to murder.[1]