Why Buy Whole Life Insurance For A Child? 
First , while no one likes to contemplate the passing of a young person , death has no respect for age . The cost of a funeral for an 8 year old is n't going to be any different than for an 80 year old . So , reason number 1 would be to protect you and your family from that unexpected expense . Life insurance rates are based upon life expectancy among other factors . Obviously the life expectancy for a normal child is expected to be several more decades which translates into many years for the life insurance company to invest those premium dollars before they eventually pay the death claim -LRB- assuming the policy is kept in force , sadly it 's not unusual for a child to become an adult and take over the policy and discontinue paying the premiums -RRB- . On a more positive note , a properly structured whole life insurance policy builds up cash value . The cash value accumulation of a whole life insurance policy from someone 's childhood until they reach retirement age can amount to a sizable asset depending upon the face value -LRB- death benefit amount -RRB- of the policy . In the ideal scenario you will leave your child with a paid up life insurance policy and a financial asset for their golden years . Decades from now your child probably wo n't remember many Christmas or birthday gifts they received from you but a good whole life insurance policy can truly be the gift that keeps on giving . 