There are many individual insurance policies on children available on the market. A standard child life policy will cover your child at a younger age (this age normally varies from one insurer to another). The premium can be paid in a single lump sum or in installments. Some insurance companies sell child life insurance policies in units, where the cost of a unit amounts to $5,000. The insurance coverage for your child ranges from $2,500 to $20,000 and this protection ends at a specified age, such as when the child turns 21. When the child reaches this specified age, the term life insurance is convertible to a whole life policy. Many insurers provide the conversion to whole life for up to five times the initial coverage. Here, no health checkups or medical exams are required for the conversion, and the policy will act as a normal whole life policy and start accumulating cash value.
In case you can't afford separate insurance for your child, you can always go for a child term rider along with you policy. Basically, riders represent additional insurance coverage for a small premium and leaves your original policy intact. Child term riders work just like an individual life insurance policy where the coverage begins at a young age and continues until the specified age (21 years, for example) or the parent reaches the age of 65 (whichever is earlier). The rider offers maximum coverage up to $20,000 and also the provision of conversion to a permanent insurance plan. Here again, the conversion is done up to five times the initial coverage without the need for further medical examination.
Some child policies also offer critical illness coverage, which provides financial compensation in the event your child becomes terminally ill.
Insurers of different states come out with various versions of a child life insurance policy or a child term rider, therefore, it would be prudent to discuss your child's needs with your insurance advisor before opting for particular child insurance.