By Dez Duran-Lamanilao

Whether you choose to buy some coverage for your child when you purchase a term life insurance policy or a permanent life insurance policy, there are pros and cons associated with that decision. According to a Forbes article that appeared in January 2016, some of the benefits include:

  • Death benefits: money for funeral expenses and other costs in the event of a child’s death
  • A guarantee that a child can buy more coverage as an adult, irrespective of health
  • Savings that the child can use later on
  • Opportunity to access cash values through tax-free policy loans

On the other hand, experts agree about issues that arise with regard to buying insurance for children:

  • Since the odds of a child dying are very slim, an emergency fund may be a better option that you could use for any type of crisis.
  • An expensive move that may not provide adequate coverage later in life
  • The presence of alternative choices that can produce better returns than life insurance

While the final decision is only yours to take, it is also noteworthy to mention that the above conditions may turn out differently for children with special needs. Companies usually have specific guidelines for children with disabilities to avoid the inherent risk related to special health care coverage. The Special Needs Alliance has presented an outline of how a certain insurance company describes specific levels of functioning of children with special needs. Thus, the insurer’s decision will depend on various factors and will eventually affect the benefits that are intended for the child.


Type of Autism IQ Level the Child Is Comparable To
High functioning autism 70
Mild functioning autism 50 to 70
Moderate functioning autism 35 to 49
Severe functioning autism 20 to 34
Profound functioning autism 20 or less


This is where insurance experts come in. They are in the best position to offer practical advice that will benefit both sides and most importantly, your child, should you decide to consider the matter.