What is a Children’s Insurance Rider?
A Children’s Insurance Rider is an optional add-on to a life insurance policy that provides life insurance coverage for the policyholder’s children. This rider offers a death benefit if a covered child passes away, typically covering children from a specific age (such as 15 days old) until they reach a certain age, often 18 or 25 years old. It is a cost-effective way to ensure that all children in a family are covered under one policy without the need to purchase separate life insurance for each child.
The Children’s Insurance Rider is usually attached to a parent’s term or whole life insurance policy, and it often allows for a fixed amount of coverage, such as $10,000 or $20,000 per child. One of the main advantages is the affordability and simplicity of having multiple children insured under a single rider. Additionally, some policies offer the option to convert the rider into a permanent life insurance policy for the child when they reach adulthood, often without additional medical underwriting.
This rider provides peace of mind to parents, ensuring that funds would be available to cover funeral costs and other related expenses if the unthinkable happens. It is a practical and budget-friendly way to provide a safety net for families concerned about unforeseen events.
