I once met a family with several children. There must have been five of six kids all under high school age. Talk about a busy family! One of those kids came down with a serious illness that would disable them for the rest of their life.
What amazed me – the family had a prior insurance agent who talked them into buying children’s life insurance when the kids were little. He sold the policies based on protecting the health of the children in the event something like this happened.
This particular child would no longer be able to qualify for a regular life insurance policy, so they were grateful they had already purchased one.
Reason One: Life insurance on kids locks in a policy, even if they become un-insurable at some future point.
Reason Two: Life insurance on kids is cheap because they are expected to live a long time. If you buy a permanent policy you will lock in their premium for the rest of their lives.
Reason Three: If you buy a whole life policy on children, it is possible the policy will become paid up at some future point. It might be twenty or more years but it’s still a very nice feature.