Give Your Baby the Gift of Life (and Life Insurance) • FaithLife Financial Blog


Give Your Baby the Gift of Life (and Life Insurance)

July 22, 2021Starting to Plan

Whether you’re welcoming a new addition for the first time or the fifth, it’s safe to say you’d do anything to protect that precious little life in your arms. And as you look into those wide, trusting eyes, it suddenly hits you – like really hits you – that they depend on you for, well, everything. (No pressure, eh?)

Newborn baby laughing and giggling

But here’s the thing: Newborns grow into babies, babies into toddlers, and toddlers into teenagers – eventually. (How’d that happen?) And of course, as our children grow, they inevitably become more independent. But that doesn’t mean their safety and well-being become any less of a priority to loving parents. And the right insurance means you are thinking (far) ahead into their future.

While purchasing life insurance for a baby may seem a bit dark, we promise it’s quite the opposite. Keep reading for the top 3 reasons it’s better to buy a policy for your little one sooner rather than later.


Believe it or not, life insurance is a gift you can give that precious new life today to protect their tomorrow. How? By providing a solid foundation for their financial future. And here’s the thing: Of all the items that you’ll need to buy your child throughout their life, Whole Life insurance is one of the few products that actually comes with a lifetime guarantee – with a guaranteed premium (i.e., the amount you pay for the policy will never go up), guaranteed access to your cash value (i.e., cash that is accumulated within the policy that can be accessed at any time), and a guaranteed death benefit (i.e., a payment made to designated family members or other loved ones).

And choosing a policy with a guaranteed insurability option means they have the option of purchasing more life insurance later in life – even if a health condition, high-risk career, or participation in hazardous activities or extreme sports makes it challenging to get a policy. Of course, no new parent wants to think about the dangers that may lie ahead, but every parent wants to keep their babies safe – no matter what their age. Investing in your little one’s financial future is one way to protect them (and possibly their babies… or your future grandchildren!) when you may not be around to do so anymore.


While you may be concerned about what can feel like a never-ending list of child-rearing expenses, life insurance is one expense that is much more affordable the earlier you get it.

That’s right, getting a policy for your baby can cost you just over $20 a month – that’s probably cheaper than your daily coffee run over the course of a month! Even better, you can choose a plan where the cost remains the same throughout baby’s lifetime (that guaranteed premium we mentioned above), making it easier for your child to take on the payments once they reach adulthood. And then there’s always the option of purchasing a guaranteed 20-Pay Whole Life policy, meaning they won’t have to worry about taking on the cost later in life.

But here’s the thing: If you wait to make the purchase, you’re risking an incremental increase in price with each birthday. While minimal, a few extra dollars a month can add up over the years. Another reason to commit to purchasing a FaithLife Financial Whole Life policy for your baby within their first year of life? You can take advantage of our Bundles of Joy Benefit, and receive $100 back as our gift to you. More savings!

Speaking of savings, remember that cash value we told you about? Well, think of it as a tax-preferred savings plan that continues to accumulate over baby’s lifetime – a nice little emergency fund that can be accessed when they need it in the future.

Back to all those baby-related expenses, here’s one more way to save a few bucks: Consider getting creative for your baby shower. Ask friends and family to contribute towards the life insurance policy you’ll be buying for baby – you know, instead of more plastic toys. Or, if you’ve already received a lot of cash in lieu of gifts and are wondering how best to invest it, remember that life insurance truly is a gift that will last a lifetime. Whatever the case, be sure to apply for the Bundles of Joy Benefit if your little one becomes a FaithLife Financial policyholder (and member) before their first birthday.


Once you’ve purchased life insurance for your baby, you are the owner of the policy and you are responsible for making the payments (otherwise known as the premium). In the future, once your baby is all grown up, it’s pretty simple to transfer ownership of the policy to your adult child – possibly tax-free – under rules set out in the Income Tax Act. (For more information on this tax savings opportunity, we recommend speaking to an accountant.)

As the new policyowner, your child has the option to access the cash value we mentioned above – to help pay for their education, a first car, or a down payment on a home. Your child can also choose to name a new beneficiary (i.e., the person(s) they choose to receive their life insurance payment in the event of their death) – like their spouse or children – as they step into your shoes and begin to think of their loved ones’ financial futures.

Here’s the best part: If you add the Guaranteed Insurability Option to your baby’s policy, this means they can purchase additional life insurance later – without the need for a medical evaluation. Because a person’s current health status determines the price of their plan, your child won’t have to worry that an unexpected illness might make life insurance less affordable down the road.

The life insurance policy you buy your baby today will become a very important part of their financial future. It’s a legacy of love from parent to child – providing a solid foundation for that new little life that you love so much.

Life insurance really is the gift that lasts a lifetime! Book a FREE Needs Analysis to learn more and get the process started.

This blog post contains general information only. Because each person’s situation is unique, it is best to speak with a qualified professional before making any final decisions. FaithLife Financial does not advise clients on tax, accounting, or legal matters.