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Placing a life insurance policy on a child can make some people unpleasant. The thought of a child passing is too hard for parents or grandparents to bear.  However, these life insurance policies become tools for the child later in life. It may take 10 years for the child to see the benefit of the gift, but these children are often rewarded quite well for the investment in life insurance.  Children life insurance and grandchildren life insurance is very reasonable to purchase.