Child life insurance could pay out if your child dies or is diagnosed with a serious illness or condition during the term of a policy.

To find the best policy, think about:

  • Who you want to cover: You can either get cover for yourself, or for you and your partner. You can then add any children you have to your policy.

  • How much of a payout you want: You get two payouts with a child life insurance policy: a single payout for you, or you and your partner, and a payout for each child.

  • How long you want the policy to last: Your options may vary depending on the insurer you choose, and the older you get the more limited your term options will be.

  • If your child is eligible for cover: Most policies have age restrictions that mean they have to be under a certain age to get added to your policy, like 21 years and under.

What are the alternatives?

  • If your child is too old to be added to your policy, they could get their own. The younger a person is when they apply for life insurance, the cheaper a policy tends to be.

  • If you only want your child to get a payout if you die, they do not need their own policy. If you want the money to go to your child directly, you can set up your policy in trust so they get it when they are old enough.

  • If you want an income paid out to support your children when you die, some insurers offer a family income benefit. This could help support your family with their monthly outgoings, like rent and groceries.