Insurance and Finance

How Much Life Insurance is Right for Your Child?

By James Mayfield 1.22.14

While it may not be something you’ve ever thought about, with the new year upon us, now is a good time to consider how much life insurance you have for your children.

According to Texas Farm Bureau Insurance Agent Chris Forgey, with life insurance, “you’re giving the children a benefit that will last the rest of their lives, and a benefit that will benefit their family.” How? Simply put, establishing a life insurance plan for your little ones (while they’re young) can prevent them from being denied a policy should an illness develop later in childhood or as an adult. Plus, there are policies can even help pay some college costs.

So the next question becomes, how much life insurance do you need to cover a child? The short answer, it depends. “A child’s whole life policy starts at $35,000, with many people getting around $100,000 in coverage,” Forgey says. But since every family is different — from how many children they have, ages of their children, and even income — it’s best to talk to an agent and define what works best for your budget.

The key to insuring a child, according to Forgey, is getting the coverage when they are young. “Get insurance on the child as early as possible,” he says. “The beauty of getting insurance for a child who is 1, 2, or 3 years old, is that you’ll get a low premium and it will benefit them for the rest of their lives. It also prevents that child from having to sit down and talk about whole life insurance with an agent when they are 25. What you’re purchasing is a legacy of love.”

If you feel your children are underinsured or you are interested in learning more about life insurance for your family, contact your Texas Farm Bureau Insurance Agent.