Child insurance (life and/or critical illness)
Depending on the product, child insurance can include protection in case of death and/or a lump sum if a covered critical illness is diagnosed. The goal is to protect your child’s financial future and support the family if something serious happens.
Why insure a child?
- Provide a lump sum in case of a covered critical illness to help with extra expenses.
- Lock in life insurance coverage at a very young age, often with favourable premiums.
- Create a long‑term asset if the policy includes cash value.
- Reduce financial stress so you can focus on your child’s health.
What does child insurance cover?
Depending on the product chosen, child insurance may include:
- A lump sum if a covered critical illness is diagnosed (list defined in the contract).
- Protection in case of the child’s death.
- Options to convert coverage to permanent life insurance when the child reaches adulthood.
How to integrate this coverage in your overall plan?
Child coverage most often complements life insurance on the parents. The idea is to secure the family income first, then add specific protection for children if the budget allows.
Our advisors can help you prioritize coverage based on your budget and goals (education, inheritance, financial security).
Illustrative example — 10-pay child whole life
Illustrative only; actual premiums and terms vary by insurer and underwriting.
- Age: 2
- Death benefit: $50,000
- No medical exam
- Type: whole life (permanent)
- Premium payment period: 10 years only
Premium assumption
10-pay whole life often has a higher monthly premium, but the policy is fully paid after 10 years and coverage lasts a lifetime.
| Item | Detail |
|---|---|
| Monthly premium | 65 $ |
| Payment period | 10 years |
| Total paid | 7 800 $ |
| Coverage | Lifetime |
| Cash value | Yes |
Strategic advantages
- Insurability lock-in— if the child develops a health issue later, they can often keep coverage and add amount without an exam (per guaranteed options in the contract).
- Low lifetime cost— 7 800 $ for lifetime coverage can be very cost-effective.
- Immediate legacy— if death occurs, parents typically receive the death benefit (e.g. $50,000).