Why buy a life insurance policy for a kid? A few of the most common reasons include ensuring the child’s future insurability or as a means for saving for college. Life insurance can also be used as a long-term financial strategy to help a child build wealth. And. sometimes, grandparents purchase it for their grandkids to make sure they’re remembered fondly after they pass.

Experts don’t universally agree on the strategy, though. Some say it makes no sense, because it rarely replaces lost income. And many financial planners say 529 plans are a better bet, though, and usually offer higher returns, albeit with a bit more risk. Most agree that taking out a policy on child should only occur after the mom and dad have adequate coverage, too. 

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