Skip to main content

The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

Your web browser is out-of-date. For the best experience, please update to a modern browser like Chrome, Edge, Safari or Mozilla Firefox.

Freedom 55 Financial is a division of The Canada Life Assurance Company and the information you requested can be found here.

Are you a member of the Public Service Health Care Plan (PSHCP) and looking for information about your benefits with Canada Life? Get details on the PSHCP Member Services website.

July 2022 – 15 min read

There are 2 main reasons to consider taking out a life insurance policy for your child:

  • Premiums may be lower because of your child’s good health and young age
  • It can help secure your child’s future financial security
  • If you purchase an insurance policy with a cash value, your child will have more time for it to accumulate
Parents usually choose between term life insurance and permanent life insurance for their children.

Term life insurance – It provides the most cost-effective coverage, for a specific length of time. It may be available as a stand-alone policy, or a child term rider to a parent’s term life insurance policy.

Permanent life insurance – It includes features that can help grow money inside your policy over time (called cash value). This money can be accessed during your child’s lifetime. When your child reaches the age of 25, the policy can be transferred to them tax-free. Later in life, your child could have the option to access the policy’s cash value to contribute to things like supplementing their retirement income or establishing a financial legacy of their own. When you purchase permanent life insurance for your child early in life, they’ll always be insured, regardless of any future health problems. Permanent life insurance costs more than term life insurance due to the cash value component.

You’d want enough insurance to be able to:·      
  • Cover funeral costs (up to $10,000)
  • Take the time you need away from work to grieve and ease the impact on your family’s finances 
 
You may also wish to consider:
  • What financial goals life insurance could help your child with
  • How life insurance fits into your family’s financial plan, including saving for post-secondary education 
Ultimately, you should ensure your child’s life insurance premium easily fits within your household budget.

Once you decide to get your child life insurance, contact your advisor to get started with this information:

  • How much you can afford to spend each month
  • Identification for both you and your child (social insurance number, birth certificate, passport)
  • Proof of income (pay stub or letter of employment)
  • Proof of address (signed lease or letter from your landlord if you rent, or a mortgage or property tax statement if you own your home)

Now that you know more about why you might purchase life insurance for your child, why not meet with your advisor to:

The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.

Related articles