We conduct the first systematic review of the impact of health insurance on children and their households in low‐ and middle‐income countries where nine‐tenths of the world's child population reside. We find only 13 studies for seven countries published between 2000 and 2014 which assess the insurance impacts for children, controlling for self‐selection and heterogeneity. Nine out of 10 studies reviewed provide consistent evidence that health insurance provides financial protection. The results are more mixed for health utilisation and health outcomes. Policy‐makers would benefit from additional research on whether and how health insurance benefits children.