Juvenile insurance is a life insurance policy for minors or young adults under the age of 16. Juvenile insurance pays out a benefit in the event of death, or depending on the terms of the insurance, may carry some cash value. Many adults see this cash value payout as well as the additional benefit of building an insurance program as an investment or gift to their child. The premiums are low and usually at standard rates.

In addition, juvenile insurance helps protect a child's insurability if the child should become uninsurable before reaching adulthood. You'll be guaranteeing your children insurability for life - no matter what health problems they may develop.

Juvenile insurance can be any type of ordinary coverage, for example: whole life, limited pay life, universal life, convertible term, graded premium whole life, or modified whole life. Due to the cash value accrued, a juvenile insurance policy can be used to build cash or loan values to help pay for a college education.

If the insured is a minor, the policy is owned by the purchasing adult until the child reaches the age of majority as defined by state law. When the child becomes an adult, most companies will guarantee automatic eligibility to extend coverage into whole life insurance regardless of future changes in health conditions.

This is a privilege, in case the child develops a condition that would make him/her ineligible for coverage by other insurance companies. They can choose to expand their premiums for greater coverage at the regular rate for those ages.