Definition: Child life insurance is a type of life insurance policy that provides coverage for children or young adults who are under the age of 21, as long as they continue to be actively involved in activities such as school sports, after-school activities, or other recreational pursuits. The primary purpose of child life insurance is to provide financial protection to the child in case of the death or injury of their parent or caregiver. It also provides coverage for future medical expenses if the child becomes disabled or has long-term care needs. A child life insurance policy typically includes a high-value annuity feature, which pays out a predetermined amount to the child when they are no longer covered by other policies or receive certain health benefits. The value of an annuity can be determined based on factors such as the child's age and the overall cost of healthcare expenses. In summary, child life insurance is a type of life insurance policy designed to provide financial protection for children under 21 who are actively involved in activities that require ongoing care or treatment. It typically includes a high-value annuity feature to cover future medical expenses if necessary.

child life insurance