Child Rider Life Insurance– Losing a child is possibly the most heart wrenching experiences a parent could have. Having to pay for a funeral and continuing to work during this horrible time would make things worse.
Having some type of life insurance in place for your child can be a good idea in order to cover funeral costs and take time off from your work to grieve. In today’s post, we’ll go over the pros & cons of a child rider, how much it will cost from the best life insurance companies, and other important tips.
Child Rider Life Insurance
When it comes to life insurance for a child, parents have a difficult time think of the possibility of their child dying.
After all, no parent wants to think about the chance that their child could pass away before them. However, it’s important to understand the benefits associating with buying protection when you have young children.
What is a Child Rider on Life Insurance?
First, you’ll want to understand what is a rider on a life insurance policy. Life insurance riders provide an additional benefit to your life insurance policy.
There are many types of life insurance riders that provide extra coverage if you were to get sick, injured or want a return of premium option. There is also a rider to provide coverage for your children.
Child Rider Life Insurance Definition
What is a child rider on life insurance? The child rider is bought in addition to the parent or guardian’s term life insurance policy.
Children 17 and younger are qualified for the child rider coverage that protects them until they reach 25 years of age. In the majority of cases, they can convert to an individual policy that ensures the child is still protected as an adult.
This would provide life insurance for your child now and when the become an adult.
What’s The Benefit Of A Child Rider?
Child riders offer your children a safety net and offer them financial assistance during a tragic time. No parent likes to think their child is going to die, but the truth of the matter is that accidents can and do happen.
Should the unimaginable happen, you and your family members want to grieve without constant worrying.
A child rider does more than just cover the final expenses; it provides you with financial support during this difficult time. Parents without sufficient financial coverage are faced to go back to work before they’re able to mentally focus on their job.
With a child rider on their policy, it provides the parents with some financial flexibility to take more time off from work and be there for each other and the other family members.
Many insurance agents urge parents to add the child rider policy to their own policy. The small fee is a small price to pay that gives parents some peace of mind and security in the event something tragic does happen to a child.
Important Facts You Should Understand About A Child Term Rider Policy
When you include a child term rider policy to your own policy, it’s the cheaper answer. After all, getting a child their own policy can cost a lot of money.
What should you know about adding the child term rider policy to your own insurance policy?
Child Rider Pros
- The life insurance child rider coverage is available to children 15 days old to up to 25 years old, carrier dependent.
- Child term riders are usually purchased at the same time as the term life insurance policy of the parent.
- Parents will pay a flat fee for the child term rider, no matter how many children need to be insured.
- Qualifications often don’t include underwriting.
- The majority of riders cover children until their 21st birthday, but this will differ between insurance carriers.
- Some policies can be changed into a permanent policy when a child hits a certain age, no matter what their health is.
- There could be limits on the amount that can be converted when that age of maturity is reached. For instance, the insurer may let you convert no more than five times the original amount.
Child Rider Cons
- If you’re able and don’t change the policy when the child reaches the maturity age, the coverage expires, and they have no coverage at all.
- If you can convert the policy when the rider expires, your child pays the premiums at their current age level.
- Any amount converted into a permanent life insurance policy is limited to amount set by the company.
If you believe you’re unable to pay for your child’s funeral or need time off from work to grieve for your loss, a life insurance policy may be your best course of action.
There are two options at your disposal:
- Child whole life insurance policy
- Child rider on your own term life insurance policy
The majority of term life insurance policies do offer the child rider option.
If you opt for this coverage, your policy will pay a death benefit should you suffer the loss of a child.
What Are The Costs Of A Child Rider Policy?
The cost of a child rider policy isn’t that much different than the actual policy. You request a certain amount to be added to the coverage – usually in categories of $1,000, which is then added to the annual premium.
Insurance companies determine the cost, meaning it varies. However, the majority run $5 to $7 a category range.
For instance, you want to cover the funeral cost, which ranges upwards of $10,000. You ask for that amount, which is $5 per $1,000.
The annual cost of the child rider is $50 or an additional $4 and change to your monthly premium.
What You Need To Remember About Child Rider Policies
Just one child rider policy covers any of the children in your home. How long your children are covered is dependent on the life insurance company, but most offer coverage to children 15 days old to 18 to 22.
Most coverages will end when a child turns 18 years old.
If you’re in the market for a term life insurance policy and have children, consider talking to your insurance broker. Your broker will look over and compare the various child rider terms.
And, if you already have a life insurance policy but need to add a child rider to it, reach out to your agent or company to add the “hopefully never needed” protection.
Final Thoughts
What is the best life insurance policy for children? Is it a separate policy? Is a life insurance child rider the best option for your family?
Your situation is unique and we’d be happy to help you by providing you all your options. At Life Insurance Blog, we work with over 60 top rated life insurance companies.
We provide free customized quotes and can provide you all of your options. We’ll never pressure you and will be happy to answer all of your questions.
You can also get free instant life insurance quotes for children right on our website. Simply input some basic details to get an idea of life insurance rates.
Thank you for reading our guide, Child Rider Life Insurance. Want to learn more? Read our post on getting life insurance while pregnant or our life insurance settlement options to see how your benefit can be paid.
