Child life insurance policies usually include positive options. For example, such policies are renewed without a medical exam.
You can withdraw money from the accumulated cash account or borrow it from the life insurance company. When the child becomes an adult, they can opt out of the policy and receive the funds in full. The money can help cover expenses such as tuition or down payment on a mortgage. Such policies are not taxed, by the way.
Life insurance cash accounts rely on the payment of premiums and grow slowly. Relatively low premiums mean that the accumulated value will be small.
Assess your budget and study your own life insurance needs before buying a policy for your child.
Source: https://www.nerdwallet.com/article/insurance/should-you-buy-life-insurance-for-children
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