Can My Children Be Added To An Existing Life Insurance Policy?

Elaine Brookes Steve Case

Author: Steve Case - Insurance Expert

Reviewed & Fact Checked By: Elaine Brookes

Updated: 31st December 2023

Can Children Be Added To An Existing Life Insurance Policy?

You must look at your policy to see if a clause allows children to be added after the initial signing.

If this is the case, the child can be added to the policy. This is common for parents wishing to cover their children as they age.

Benefits can usually be collected if the child is found to have a severe medical condition or terminal illness.

Why Get Life Insurance For Children?

For many parents, having life insurance for their child seems like an odd thing to do. The fact is, though, that children are just as likely to be injured or become seriously ill as adults.

While it may not be something you want to think about as a parent, life insurance for your child can offer some peace of mind if the child becomes seriously ill or injured.

At times such as this, the insurance policy covers a financial burden that can cripple a family.

Hospital care is not cheap; a prolonged stay can become expensive, even for well-off families. Some parents make the mistake of thinking that they have nothing to worry about because the NHS covers most treatments.

However, what if they decide that standard treatments are not enough? These costs would come out of pocket if they seek additional or experimental care.

Compare Plans From The Leading Life Insurance Companies – No Obligation Quote

  • Our price match promise means we will find you the right cover for your personal circumstances at the lowest price possible. Terms & Conditions and Privacy Policy

how to get life insurance

Another benefit is holding a policy allowing the parents to stay with the child during this difficult time.

If extra money is needed and there is no policy, indeed, at least one of the parents would have to take on additional work. With a policy, the parents can work their regular hours or potentially take some time off work to spend even more time with the child.

How to Add Children to Your Life Insurance Policy

As stated above, the first step is to check the policy to ensure that adding a dependent is allowed. If this is the case, contact the insurance provider for the details on adding a child. Some information needed is the date of birth, gender, and formal name.

child and life assurance photo

Additionally, the insurer may want to know why the child is being added to the policy. This protects the insurance provider from adding someone who is already seriously ill or injured to the policy.

Even though the cost of the policy may rise, it should not be very much.

The only factor that would change would be if the child had already been diagnosed with some condition that could realistically decrease his or her expected lifespan. Sometimes, the provider will offer to cover dependents for free up to a certain age.

Some parents may decide to have a permanent life insurance policy for their children. The benefit of this type of policy is that it will pay off as a sort of savings plan. If the policy is taken out when the child is a toddler, it will hold significant value when he or she is ready for college.

You may be able to cash out the policy or even borrow against the policy to cover future educational costs. Life insurance cover for Dads and life insurance policies for Mums offer bespoke solutions, and we are happy to investigate these for you without any obligation on your part.

There are significant benefits to adding a child to a life insurance policy. From peace of mind, if a serious illness or injury occurs to having a small nest egg to draw against for education, it simply makes sense to have the financial security of a life insurance policy for your children.

What are the terms and conditions for including children in a Critical Illness policy?

Including children in a Critical Illness policy protects your family’s future. When considering this coverage, it is essential to understand the specific terms and conditions that apply.

Firstly, it is important to determine if your insurance provider automatically includes children in the policy or if you need to opt in.

Generally, Critical Illness policies may cover your current natural, legally adopted, or stepchildren and any future children you may have. However, verifying this inclusion with your insurance provider is recommended.

When children are included in a Critical Illness policy, separate terms typically apply. Usually, coverage for children begins from birth and extends up to age 21.

It is important to note that you can typically only make one claim per child under the policy, and the payout amount for children is often a lesser percentage, typically around 50%, of your total coverage. This payout is usually capped at a specific figure, such as £25,000.

It is also worth considering that including children in your policy generally does not affect your coverage. However, waiting periods and exclusions may apply, which should be carefully reviewed with your insurance provider before finalising the policy.

To ensure you have a comprehensive understanding of the terms and conditions of including children in a Critical Illness policy, it is always advisable to consult with your insurance provider and clarify any specific details or concerns you may have.

Life Insurance For Kids And Children Conclusion

You might want to consider getting life insurance for your children for several reasons. Here are some of the most common ones:

  1. If something happens to the child, the life insurance policy can provide financial security for the family.
  2. The money from the policy can be used to cover funeral expenses and other costs associated with the death of a child.
  3. If the child is still young and has not yet started working, the life insurance policy can provide financial support until he or she can earn an income.
  4. A life insurance policy can be used to pay for college tuition or other educational expenses.