
The upside of buying a life insurance policy for your children or grandchildren is that they have coverage as they grow. If nothing terrible happens (and most of us never have to face such an awful event), the child grows up.
A life insurance policy bought for a baby will mature as the child grows. By the time the child is ready to go out into the world they have a policy to protect them as they attend college, trade school, or enter the work force. If they get married and start a family, there is a small, automatic protection already in place to provide for the spouse and children. With most policies that are purchased when one is very young, the same company is willing and able to add other policies as the child grows into adulthood. The rates can be very affordable for a young family. Special rates apply for long time customers, regardless who paid the premiums. So, grandparents, parents, aunts, uncles or godparents can start insurance programs that will follow the child all the way into adulthood. This will allow for more benefits at reduced rates when they need them the most.