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Life Insurance Requirements For Adoption

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While you may not be required to carry life insurance to adopt a child in most states, it’s an essential purchase for new parents.

With so many factors to consider, the last thing on your mind may be life insurance requirements for adoption.

But adding a child to your family should always make you consider purchasing or increasing your life insurance coverage, whether you’re giving birth or adopting.

Having a policy in place could help you get approved for adoption and give your family financial security if life takes an unexpected turn.

The article below answers key questions about life insurance and adoption, providing you with your best coverage options.

Should You Consider Life Insurance For Adoption?

LIfe insurance is a must for adoptive parents, but it should also be part of the financial plan for any parents.

If you or your spouse passed away, it would leave a significant financial void to be filled.

A life insurance policy could help pay for expenses like:

  • Bills
  • Mortgage
  • Childcare costs
  • Tuition
  • Debt repayment
  • Final expenses

Life insurance provides your loved ones with a financial safety net. It’s a smart move for any parent.

Is Life Insurance Required For Adoption?

During the adoption process, the adoption agency will set out to make sure you are a suitable candidate for adoption.

To ensure you are a safe match for the child, they’ll take an in-depth look at your family dynamic, living conditions, and financial outlook.

Since life insurance is one of the basic building blocks of a strong financial plan, you may be asked whether you have a life insurance policy during the adoption process.

Depending on the adoption agency you use and where you live, life insurance may be a requirement.

For instance, Mississippi law requires candidates for adoption and foster care to carry life insurance.

This shows the adoption agency you have protection in place to care for a child in a worst-case scenario.

Owning a life insurance policy shows you are committed to the wellbeing of the child.

Should You Buy Life Insurance for Your Adopted Child?

Some parents choose to insure their kids with a children’s life insurance policy.

Parents can purchase an individual whole life policy or add a children’s rider to their term policy.

Some stand-alone children’s insurance policies also include an interest-bearing savings account.

While children’s life insurance isn’t always a necessary or useful purchase, you can legally take out one of these small policies on your adopted child as their guardian.

Whether you insure your children or not, you absolutely need to buy life insurance for yourself to provide for them.

Can You Name Your Adopted Child As Your Beneficiary?

Along those lines, you can name your adopted child as a beneficiary of your policy just like a biological child.

If someone would suffer as a consequence of your death, they have an insurable interest in you.

Your children fall into this category, making them acceptable beneficiaries.

However, designating your children as beneficiaries may not be a good call as policy benefits cannot be paid out to a minor.

Until your child reaches adulthood, you can set up a trust or designate a guardian who will follow your wishes in disbursing the policy’s benefits if you pass away.

What Are the Best Life Insurance Options for Adopting Parents?

The two basic types of life insurance are permanent life insurance and term life insurance.

For most parents, the best and most affordable life insurance option for adoption is term life insurance.

Term life is affordable, flexible, and offers large face amounts which you might need with a new child.

It provides a death benefit for a set number of years during which your premiums will not increase.

The duration factor makes term life insurance for adoption a great solution. For example, a 20-year term life policy could provide protection while your new child is growing up.

With life insurance, you can re-evaluate your options and continue to update your coverage to meet your changing needs.

To get an idea of your life insurance options, you can start by comparing quotes.

And if you’re curious about the life insurance requirements for adoption, take a look at your state laws and the guidelines set forth by your adoption agency.

Does Being Adopted Impact Your Ability to Buy Life Insurance?

Another common question surrounding life insurance and adoption is how being adopted affects the process of purchasing a policy.

If you’re adopted, it won’t have much of an effect on your life insurance application. However, family health history is one of the key underwriting factors companies use to determine your rates.

If you’re unsure about your biological family’s predisposition to health conditions, it shouldn’t exclude you from coverage.

That section of the application will be marked as unknown and left out of your health profile.

But if you do know your family health history, you should be honest about it. Provide the life insurance company with as many details as you can.

If it becomes clear that you withheld info about your family health history intentionally, your policy could be canceled. Always be honest.


Jason Fisher

Jason Fisher is the founder and CEO of, LLC. and a multi-state licensed life insurance agent who has helped over a million Americans seek out affordable coverage, compare quotes, or get their family and businesses covered.

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