A life insurance policy protects your family from your financial debts. The policy is paid for through premiums, which represent the total cost of the policy. Your policy may be altered from its original terms and conditions through riders. Once such rider is a child rider. These are often added to permanent life insurance policies.
A child rider is an extension of life insurance benefits. This rider purchases life insurance on the life of your child. The insurance company normally allows a simplified form of underwriting for this, though the insurer may also require a health exam for the child prior to approving the rider. Once approved, you and your child are both covered under the same policy.
The child rider is a term insurance policy. These policy riders are often offered with permanent insurance, but term insurance policies may offer child term riders as well. The term policy may be a level term or an annual renewable term policy; they may or may not expire at some point. This means that the insurer only offers the term rider for a set number of years and then does not allow renewal. Instead, the child must buy his own separate policy.
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You get life insurance for your child as part of your policy. The insurance company may offer discounted premiums on your policy, or waive certain policy fees, if you combine your insurance coverage with the rider. Alternatively, the insurer may offer you the option to convert the child rider to a separate policy without any further paperwork or evidence of insurability (like a health exam).
Before you buy a child rider, think about whether your child really needs life insurance. You may wish to consider buying your child a permanent life insurance policy to help him get started with his insurance coverage as he gets older. But, a temporary insurance policy may serve little purpose when life expectancies for children suggest a low mortality rate.