How life insurance for children works in Canada

With files from Jordan Lavin

This article was originally published on February 16, 2023 and was updated on January 22, 2026.

As a parent, you never want to imagine anything happening to your child. It’s hard to even fathom getting them a life insurance policy. But what if your child or grandchild gets ill or passes away unexpectedly? Having life insurance in place will provide a financial safety net to cover expenses and lost income during your time of grief. 

On the other hand, what if your child lives a long, healthy life and has a family of their own? Purchasing life insurance for them when they’re young can help secure their financial future and guarantee their coverage in adulthood. 

Here’s everything you need to know about getting life insurance for children in Canada.

Do children need life insurance?

Children don’t need life insurance in the same way adults do, since they don’t have an income or dependents. However, buying life insurance for kids can be a wise financial decision as premiums are typically affordable. 

Here are three reasons to consider taking out a life insurance policy for children: 

1. Cover final expenses: Families who lose a child will incur funeral costs, may need to take unpaid time off work, and will likely want to invest in counselling. While a life insurance benefit can’t make up for the loss, it can help cover expenses and replace income while you grieve. 

2. Guarantee insurability: Not only is life insurance cheaper when a child is young and healthy, but it can also be ‘converted’ into an adult policy without a medical questionnaire or exam. This means the child will have coverage later in life, even if they develop a medical condition that would prevent them from getting coverage as an adult.

3. Build and transfer wealth: Permanent life insurance policies for children, such as whole life and universal life, accumulate cash value that can be accessed during the child’s lifetime. Once the child reaches a specified age (set by the insurer), the policy can be transferred to them tax-free. Parents or grandparents may gift this type of policy to transfer their wealth or help children establish a financial foundation. 

Best life insurance options for children

There’s more than one way to get life insurance for children, typically through term life insurance policies, riders or permanent life insurance plans. Here are the main options:

Child term riders (CTR): If you already have your own life insurance policy, one of the cheapest ways to get insurance for your children is with a child term rider. The rider typically offers guaranteed insurability up to a specified age and amount, allowing the child to convert it into their own life insurance policy without a medical exam.

Stand-alone term renewable coverage: This is a child’s own term life insurance policy, which may be renewed at predetermined intervals and in some cases without supplying additional medical evidence, depending on the insurer and policy. In some cases, you may be able to convert the coverage to a permanent policy, such as whole life insurance. 

Permanent life insurance: This option typically comes with significantly higher premiums because coverage is life-long and payouts are guaranteed. Permanent policies also build cash value over time with an investment component, making them ideal for high-net-worth individuals.

How much does life insurance for children cost? 

The cost of life insurance for children varies based on the type of policy, coverage amount and duration. However, CTRs are generally inexpensive and can cost just a few dollars per month. Depending on the policy type and insurer, coverage amounts typically range between $5,000 and $50,000. 

To get a personalized quote, compare life insurance plans from top providers in Canada to see what each insurer offers under its policies. Note that actual coverage can vary significantly from one provider to another for plans with similar prices.

What does life insurance for kids cover?

Life insurance for children pays out a death benefit if the insured child passes away during the term of the policy. The death benefit can be used to cover final expenses, such as funeral costs and other family needs. 

What does life insurance for kids not cover?

Most child life insurance policies exclude certain causes of death. If the child has a pre-existing condition at the time of application, your claim will be denied if it contributes to their death. Depending on the insurer, health problems that arise shortly after birth may count as pre-existing conditions, even if you had already purchased a policy.

A child’s life insurance policy may not pay out in the case of accidental death where the accident could reasonably have been prevented. For example, a benefit may not be paid following the death of a child in a car accident during which they weren’t properly restrained.

Sadly, most insurance policies do not cover death by suicide, despite it being the leading cause of death among youth and young adults.

Where can I get life insurance for my children?

Here are a few of the children’s life insurance policies offered by the larger life insurance companies in Canada:

Manulife offers a child protection rider that provides $10,000 in coverage per approved child and can be issued for children aged 15 days to 18 years. The coverage expires at age 25 and includes a conversion option to a new policy. 

Canada Life offers a CTR that can be issued for children between the ages of 15 days and 18 years. The coverage can be extended until the child’s 25th birthday, at which point it will end. You can convert the child’s coverage to a new plan for up to $250,000 in coverage, without needing a new health or medical exam. 

Foresters also offers a child term rider that can be issued starting at 15 days. The premiums are guaranteed, and the coverage remains in place until the child reaches 25 years of age or converts their coverage to a new permanent insurance plan. The policy can be converted without evidence of insurability, up to $250,000 or ten times the term coverage amount.

When can you get life insurance for children?

Assuming a healthy birth, you can get life insurance for your child shortly after they’re born – typically after 15 to 60 days. Older children may qualify for life insurance as well, as most insurers will allow you to get a children’s life insurance policy until the time they turn 18.

To qualify for life insurance for your child, you may have to answer some questions about the child’s medical history, as well as your own. As with most term life insurance policies, pre-existing conditions won’t exclude them from coverage, but will prevent a benefit from being paid if they contribute to the cause of death.

Note that most children’s life insurance policies have a 24-month waiting period before benefits may be paid. That means if the child dies within two years of purchasing the policy, the payout will be limited to the amount of premiums paid.

Know that insurers cannot ask if you’ve previously undergone genetic testing for your child. However, if one of your family members has an inheritable condition, the insurer can deny coverage.

The bottom line

Purchasing life insurance for a child in your life is both a wise protection plan and a smart financial decision. Child policies are low-cost and can provide future insurability and, in some cases, investment options depending on the policy type. In the event of a worst-case scenario, a death benefit can help cover associated expenses. Compare life insurance quotes on Ratehub.ca today to learn more about your options. 

Also read

• Baby life insurance in Canada – What you need to know
• How much life insurance do you need? 
• The biggest myths about life insurance debunked