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What You Need To Know About Adding a Child Term Rider on Your Life Insurance Policy

This article covers the benefits and drawbacks of getting life insurance coverage for your child by adding a child term rider on your life insurance policy.

Insurance Riders: Adding a Child Term Rider on Your Life Insurance Policy

Know the Facts about Adding a Child Term

Adding a child term rider onto your life insurance policy can be an inexpensive solution for parents to insure their children without having to purchase a completely separate life insurance policy. If you're a parent who is considering life insurance coverage with a child term rider, here's what you need to know.

  • Coverage is typically available for children 15 days of age to 18-25 years of age, depending on the carrier.
  • Child riders are added onto a parent's life insurance policy, typically at the time of purchase.
  • Under this rider, you typically pay a flat rate fee regardless of the number of children you wish to insure.
  • Generally, there is no underwriting required to qualify.
  • Most riders will cover the child until they reach the “age of maturity” which is often age 21, but may vary among carriers.
  • Some policies will allow you to convert some or all of the term policy into a permanent policy when the child reaches the specified age of maturity, regardless of their health.
  • There may be limits on how much you can covert when the child reaches the age of maturity. For example, the insurer may only allow you to convert up to 5 times the original face amount of the rider.

While adding a child term rider onto your policy can prove beneficial in many ways, there are some drawbacks. Here's what you need to know.

  • If you're allowed to, and don't convert the policy at the age of maturity, the coverage will expire, leaving them with no coverage.
  • If you're able to convert the policy at the time the child rider expires, the child will begin to pay premiums at their attained age.
  • The amount you can convert over into a permanent* life insurance policy can be limited - depending on the amount set by the life insurance company.

For more information on life insurance for children as well as additional life insurance policy riders, visit the Protective Learning Center.

* As long as required premium payments are timely made.

 

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Child Term Rider

A child term rider can be an affordable way to add additional coverage for your child onto your life insurance policy. This article presents the benefits and limitations of a child term rider, and what you need to know before adding it onto your life insurance policy. For more information, visit our learning center.


All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

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