Why McFie Offers the Best Life Insurance for Kids

When discussing life insurance, the importance of considering coverage for children is often overlooked. However, purchasing the best life insurance for kids can bring substantial benefits and peace of mind. 

At McFie Insurance, we specialize in providing optimal child life insurance policies designed to protect your child’s future insurability and financial well-being.

What is Child Life Insurance?

Child life insurance is a permanent policy typically purchased by a parent or grandparent to cover the life of a minor. These policies are intended to last the child’s entire life. While the coverage amounts may be modest compared to adult policies, the premiums are locked in at a low rate, especially with whole life insurance. Ownership of the policy can be transferred to the child at age 18.

Should I Purchase Child Life Insurance?

When discussing life insurance policies, your children’s life insurance might not automatically come to mind. However, we encourage you to consider life insurance for children as it can greatly benefit their lives in the future.

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How Does Life Insurance for Children Work?

There are several types of life insurance policies available, but when it comes to securing the best coverage for a child, permanent participating whole life insurance is the ideal choice. Unlike term life insurance, which is commonly used for adults, standalone term policies are generally not available for children. Most insurance companies do not offer term life insurance to individuals under the age of 18. However, if you have a term life insurance policy for yourself, you may have the option to add a children’s insurance rider, which provides a small amount of term coverage for your child.

Whole life insurance stands out as the preferred option because it not only provides lifelong coverage but also builds cash value over time. This cash value can be accessed later in life for various financial needs, such as education expenses or a down payment on a home.

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Many assume that child life insurance primarily benefits the parents or designated beneficiaries in the event of an unexpected tragedy. While the policy does include a death benefit—typically used to cover funeral costs and related expenses—the value of child life insurance extends far beyond that. These policies offer long-term financial security for the child, ensuring guaranteed insurability, steady cash accumulation, and future financial flexibility.

The Pros of Life Insurance for Children

Choosing the right life insurance policy for kids can provide both immediate and long-term financial advantages. McFie’s best life insurance options for kids offer valuable benefits that go beyond just a death benefit, helping to secure their financial future while also building wealth over time.

• Protect your child’s future insurability: Insuring your child at a young age, even as early as 15 days old, locks in their ability to have coverage regardless of future health issues that may arise.
• Lock in the lowest premium costs: Life insurance premiums are significantly lower for young children. Starting a policy early takes advantage of these low rates, resulting in substantial savings over the life of the policy compared to purchasing as an adult.
• Guaranteed ability to purchase more coverage later: Many of McFie’s child life insurance policies include a Guaranteed Insurability Rider (GIO). This allows your child to increase their coverage at designated future times without needing to pass a medical exam.
• Accumulate accessible cash value and savings: The whole life insurance policies offered by McFie also provide a cash value component. This cash value grows over time and can be accessed by you or your child in the future, acting as a “living benefit” of the policy.

Common Arguments Against Buying Life Insurance for Children

While some advisors and financial planners tell parents it’s not necessary to insure their children because of the added cost and low short-term return, it actually can save you and your child money in the future and provide many benefits to them later on in life. Here are a few common arguments against buying life insurance for children and why we generally disagree with them.

1. There are so many fees that the savings vehicle isn’t worth it:
   This argument against buying life insurance is valid about universal life insurance or IUL (indexed universal life) but not true for whole life insurance. We recommend whole life insurance for children because it has better benefits. There is a fixed policy fee with whole life insurance but it is low because it is not based on a percentage of the policy premium.
2. Investments and other similar options can accrue more money faster than cash value in life insurance policies:
   Could you save more by investing or doing something else with your money? Possibly. The stock market is an ever-changing game though nobody knows what it will do next. If a parent is inclined to invest money for their children that’s fine, but we also encourage them to provide certainty by getting life insurance too.
3. The odds of your child passing away and you needing the death benefit is slim:
   This is a true statement. Parents hope they never have to use the death benefit of a child life insurance policy, but aside from the living benefits that a child’s life insurance policy provides, we believe that no parent should ever have to face financial stress because of the loss of a child.

Why McFie’s Life Insurance for Children Stands Out

At McFie Insurance, our expertise lies in designing the optimal policies for whole life insurance for children. We structure our child policies to accumulate the highest potential cash value, maximizing this key living benefit.

We take the time to understand your unique needs and craft the ideal child life insurance plan for your family’s goals and budget. Our streamlined process makes it easy to get your child protected with the best coverage.

Is Purchasing Life Insurance for Children a Wise Decision?

There are certain situations where purchasing a life insurance policy for your child may be a wise decision. Two key factors to consider are:

• Does your child have a medical condition that could impact their insurability in the future?
• Does your family have a history of health conditions that may pose early-life risks for your child?

If either of these applies to your situation, exploring life insurance options now can provide long-term financial security and ensure your child has coverage regardless of future health changes.

Frequently Asked Questions About Child Life Insurance

If you’re unsure whether child life insurance is the right choice, reviewing some common questions can help you make an informed decision.

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How Much Does a Policy Cost?

In many cases, the cost of insuring a young child under the age of one is surprisingly affordable—often less than a dollar a day for $50,000 in coverage. Since rates are lowest at younger ages, securing a policy early can provide long-term savings. If you’d like a more precise estimate, McFie Insurance can provide a free, personalized quote based on your needs.

Who Is the Policyholder?

For adult life insurance, the insured person is typically also the policyholder. However, when it comes to child life insurance, a parent, grandparent, or legal guardian serves as the policyholder, managing the policy on behalf of the child until they reach adulthood.

Get Child Life Insurance With McFie Insurance

If your child has a medical condition that will have lasting implications, or your family’s history includes juvenile health risks, it’s especially prudent to secure life insurance coverage for them as early as possible. 

If you have other questions about buying life insurance for a child or want to know how to set up the best life insurance policy to get the most cash value for your children to use throughout their lives, we are here to help. Schedule a free appointment, and we’ll help you make the right decisions for your kids’ life insurance.

Ben T. McFie

There's a lot of confusion around finance; there's so much to know and it's frustrating when you don't know enough to make the best financial decisions. I like to bring clarity to financial matters so people can make good financial decisions that will help them live wealthier more fulfilling lives.