Yes, parents have an Insurable Interest in their children, which is required in order for someone to buy life insurance on another person.
Many parents buy life insurance plans for their children for a number of different reasons, including:
- To provide money to pay for the child's funeral and burial,
- To build cash value inside the policy for the child's future,
- To guarantee the child life insurance protection as an adult, and
- To lock-in low rates on life insurance for the child.
Here's how to buy life insurance for your child.