Insurance for dependents - Piece of mind and good financial planning to leave a lasting legacy

April 14, 2023 / Insight from Chris Schoonderwoerd, CFP®, Wealth Advisor

Parents sitting on the floor of their living room, making an arch with their arms over their two children who are sitting between them.

In recent months, we have written about developing your personal financial plan, wills and estate planning, testamentary trusts, living benefits, and health insurance types. This month, Chris Schoonderwoerd, CFP discusses leaving a legacy for dependents through life insurance coverage.

Purchasing life insurance policies for dependent children, or grandchildren, can be a simple and effective way of planning for intergenerational wealth transfer, creating prequalifying opportunities for additional policy coverage in the future regardless of health issues, and of course, as coverage for costs related to a dependent child’s death.

Children’s life insurance is a broad term that refers to life insurance policies where the insured is a minor and the policy owner is an adult – usually the child’s parent or grandparent.

There are two ways to get children’s life insurance. The first is through a term rider on your own life insurance policy. The second is purchasing a separate, permanent policy for your child. A term rider is generally less expensive, but it provides significantly less coverage than an individual Whole Life or Universal Life insurance policy for the dependent child. An individual policy also provides greater options for coverage and future insurance eligibility with the addition of a guaranteed insurability rider added to the policy at inception.

Children’s insurance can be structured to remain in force for the covered child’s lifetime, including into adulthood. Whole Life & Universal Life policies can build significant cash values over time. Policy owners can access the available cash value for future opportunities or to help pay for a life event - like buying a first house.

As with all insurance types, the benefits are accrued only if the insurance premiums are paid. At the time of application, the length of the premium-paying period can be selected. This can range from as few as four years to the life of the insured child, depending on what best suits the situation.

If you are interested in planning for your dependent child’s future through children’s insurance or other financial tools, contact your  Wealth Advisor for more information and to help chart your course.

Chris Schoonderwoerd, CFP®

Wealth Advisor

Phone : 780-412-6608
Email :

The particulars contained herein were obtained from sources we believe to be reliable, but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation of these particulars and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. The opinions expressed do not necessarily reflect those of NBF.

Insurance products and services are provided by NBF Financial Services (NBFFS). NBFFS is not a Member of the Canadian Investor Protection Fund (CIPF). Insurance products are not protected by the CIPF.

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