Child life insurance
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 and to secure inexpensive and guaranteed insurance for the lifetime of the child. It offers guaranteed growth of cash value, which some carriers allow to be withdrawn (collapsing the policy) when the child is in their early twenties. 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.
- Are issued with face values between $5,000 and $50,000.
- Are always issued without a required medical examination.
- Have zero investment and zero interest rate risk associated with cash value growth.
- Provide insurance coverage for a designated beneficiary.
Child life insurance should not 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.
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. The Friendly Societies Act 1875 provided for payments on the death of children to pay the expenses of their burial. The coroner, Mr Braxton Hicks, wrote a letter to the Times in 1889 denouncing the practice of insuring children's lives because the insurances act as a temptation to the parents to neglect them, or feed them with improper food, and sometimes even to kill them.
- "Archived copy". Archived from the original on 2010-12-03. Retrieved 2010-11-05.
- "Archived copy". Archived from the original on 2010-11-01. Retrieved 2010-11-05.
- "Archived copy". Archived from the original on 2011-03-01. Retrieved 2010-11-28.
- "Infantile Insurance". Times [London, England]. 14 Feb 1889. p. 13 – via The Times Digital Archive.