How Much Does a Children’s Life Insurance Policy Cost?

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A Children's Life Insurance policy can be a great way to protect your child's future insurability, and it offers some valuable benefits.

However, the challenge can be fitting in the cost with your other financial objectives, but the good news is that a Child Life plan can accommodate almost any budget.

Below are examples of pricing for different child life plans and some of the key benefits of each plan.

1. Whole Life Insurance

This is the most expensive solution for a child, but it also offers the most comprehensive coverage. Plans can be participating (qualify for a policy dividend and build a cash value) and non-participating (builds a cash value but has no dividends).

Some examples are below:

Male: Less than a Year Old

Industrial Alliance's Whole Life Non-participating Life Pay at the $50,000 coverage level will cost $22.55 a month with a $1,030 cash value after 20 years and a $17,485 cash value to age 65.

Features in the plan include non-participating whole life with guaranteed level premiums, and if a policy is issued to a child between the ages of 0 and 20, guaranteed insurability is automatically included. An increase in face amount can also apply when the insured reaches the age of either 20 or 25. This same option can also be exercised at certain times, such as marriage, birth of a child, or completion of the insured's post-secondary studies.*

*Note that the guaranteed insurability benefit is not included in the policies of insured people who pay extra premiums.The face amount is guaranteed for the entire life of the insured person, with the exception of the 40 per cent increase of the guaranteed basic face amount. There is also a non-smoker bonus, but satisfactory proof of insurability must be presented to qualify for that bonus. Plus, after the non-smoker bonus is granted, the increased face amount is guaranteed.

Male: Less than a Year Old

Assumption Life's Participating Plus Junior Plan Paid-Up Additions Option, at $50,000 in coverage, comes with an increasing death benefit of $91,227 after 20 years and a $220,131 increasing death benefit to age 65. There is also a $10,225.57 cash value at 20 years and a $109,562.28 value after age 65. The premium on this plan costs $74.21 a month. 

The features of the plan include that it's a participating whole life plan with guaranteed level premiums. The plan also offers five dividend options, which can be taken out as cash or reinvested into the policy, but the dividends are not guaranteed. Face amounts for this plan range from $5,000 to $4,000,000, and the premium is payable for 20 years. The plan is for children from less than a year to 17, and it's also available online as a quick-issue product. 

Male: Less than a Year Old

Industrial Alliance's Child Life Duo is a non-participating whole life insurance policy with critical illness coverage. A $50,000 face amount will cost $33.80 per month for a male who is less than a year old. This plan offers innovative and affordable protection for parents of children age 20 and under who not only want to guarantee their child’s insurability, but who are also seeking low-cost critical illness insurance.

The features of this plan include the fact that the whole life portion of the policy is paid-up by age 30. This product is designed for parents who want to stay by their child’s side in case of critical illness, and that critical illness protection can be converted into whole life coverage by age 30.

If that weren't enough, as long as the insured meets the non-smoker requirements and satisfactory proof of insurability is presented to the insurance company, the coverage sum will be increased by 40 per cent on the insured's 15th birthday.

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LSM Tip: The cost per thousand dollars of coverage decreases significantly in higher coverage amounts, especially for Industrial Alliance's Child Life Duo Plan.

2. Stand-alone Term Policy

Male: Less than a Year Old

Transamerica's Term 20 Policy, with $50,000 in coverage, costs $11.39 a month. The premiums are level for 20 years, and the policy is guaranteed renewable, but the plan has no cash value.

Transamerica's Term 30 Policy with $50,000 in coverage costs $14.39 a month, and the premiums are level for 30 years. The plan is also guaranteed renewable with no cash value.

LSM Tip: Like permanent plans, the cost per thousand dollars of coverage decreases significantly in higher coverage amounts.

3. Children's Term Riders

A Children's Term Rider must be added as a rider to an existing policy owned by the parent, and it can not be kept as a stand-alone policy.

Most Companies offer Children's Life Insurance Riders with face amounts ranging from $5,000 to $30,000. The cost per $10,000 of coverage is between $5.00 and $7.00 a month, and multiple children can be added under one rider.

LSM Tip: Manulife Financial has a unique twist to its children’s life rider. Manulife allows each policyholder to add a children's rider for each child for $10,000 at a cost of $2.04 per month. The twist is that the rider allows each child to convert to a face amount up to 25 times their coverage ($250,000) without a medical examination. This is a terrific option, especially for children with health issues in their family.


For more details on Children's Life Insurance in Canada, give us a call at 1-866-899-4849 or visit our Whole Life Insurance Quote Page.

8 Comments

  1. Leila 04/21/2013 at 8:27 am

    My son is 5 and has Autism. We were unable to add him as a child rider?

    He is really very healthy, we have made big improvements watching his diet.

    How much would it be for $50,000 of your help !!!

  2. LSM Insurance 04/21/2013 at 8:36 am

    Thanks for the note Leila.

    I’m glad to hear your son is doing well – congratulations on being so proactive with things.
    Unfortunately most insurance will postpone insuring a child with Autism until 8.

    Having said that we will send some preliminary inquires to the different life insurance companies and be in touch by email. Regards,

  3. Alex 04/24/2013 at 4:19 pm

    Are the premiums on the Industrial Alliance plan guaranteed and how much is it for a 3 year old?

  4. LSM Insurance 04/24/2013 at 4:38 pm

    Alex, the rates are guaranteed. The premium will depend on which Industrial Alliance Children’s plan and the amount of coverage along with the child’s gender.

    We will send you a separate email now.

  5. Ginette 06/13/2013 at 10:52 am

    Hello… Great site.
    My Husband and I each have an Life Insurance through BLUE CROSS. RETIRED. (100,000) ALSO..I’m one of those who enroll in Life and/or dissability insurance for both of us…via organization such as Sears, and pay a monthly fee. EI: {(Canadian Premier Life) A.D. Insurance; ARCP Insurance & CANCER insurance}
    Also enrolled with the Hudson Bay Canada LIfe Insurance Toronto) for CHOICE ACCIDENT.

    Some of these insurance claim that they will pay X number of dollars if hospitalized. Husband claims I am throwing my money away? Need help and guidance, suggestions Thank you.

  6. LSM Insurance 06/13/2013 at 1:01 pm

    Thanks for the note. It’s hard to say what you should do without knowing your specific needs. We will be in touch by email.

  7. Fragile 07/11/2013 at 8:12 am

    To me it is a waste tpo insure a child.

  8. LSM Insurance 07/11/2013 at 11:10 am

    Thanks for the note. I agree its more more important that the parent has insurance as they are the breadwinner. But insuring a child offers many benefits locking in at a low rate, guaranteeing insurarability, tax sheltered cash values

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