Child Rider Life Insurance
A child rider can be added to a life insurance policy, providing a death benefit if any of your children pass away. Child riders are inexpensive compared to a child whole life policy, and it can be converted into a permanent policy once the child reaches the maturity age.
- Written by Lindsey Crossmier
Lindsey Crossmier
Financial Writer
Lindsey Crossmier is an accomplished writer with experience working for The Florida Review and Bookstar PR. As a financial writer, she covers Medicare, life insurance and dental insurance topics for RetireGuide. Research-based data drives her work.
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Lamia Chowdhury
Lamia Chowdhury
Financial Editor
Lamia Chowdhury is a financial content editor for RetireGuide and has over three years of marketing experience in the finance industry. She has written copy for both digital and print pieces ranging from blogs, radio scripts and search ads to billboards, brochures, mailers and more.
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Eric Estevez
Eric Estevez
Owner of HLC Insurance Broker, LLC
Eric Estevez is a duly licensed independent insurance broker and a former financial institution auditor with more than a decade of professional experience. He has specialized in federal, state and local compliance for both large and small businesses.
Read More- Published: April 13, 2022
- Updated: August 10, 2022
- 5 min read time
- This page features 5 Cited Research Articles
- Edited By
What Are Child Riders for Life Insurance?
Child riders are an add-on option to most life insurance plans that provide the beneficiary with a death benefit should your children pass away.
While it is challenging to think about, a child rider can help ease the financial burden during a difficult time by covering funeral costs and other unexpected expenses.
The rider coverage will typically last until the child turns 25 or you turn 65, whichever comes first. Some insurance companies have slightly different guidelines for these age limits.
For example, with Progressive, your children will be covered until they are 26 years old. But for Nationwide Mutual Insurance Company, your children will be covered until they are 22 years old. Confirm the maturity age for rider coverage with your insurer to avoid unexpected termination.
How Do Child Riders Work?
Child riders provide level term life insurance for your children by adding on a rider to your existing policy. One child rider will cover all your current and future children with no medical exam required for coverage.
Should any of your children pass away while the rider is in force, you receive a death benefit that is paid out in a tax-free lump sum. This means you get the entire death benefit immediately after the claim is approved.
- Your child must be between 15 days to 18 years old.
- You must be between 20 to 55 years old to add a child rider to your policy.
- The child must be biologically yours, a stepchild or legally adopted.
A child rider will increase your premium price by a small amount. The annual cost for a child rider add-on can be as low as $50 a year, and the coverage cap is typically $25,000 per child.
What Are the Types of Child Life Insurance?
Child term riders and child whole life insurance are the two types of child life insurance. Both have set premiums and don’t typically require a medical exam. However, the two options differ in costs and benefits, making them each suitable for different needs.
| Child Term Rider | Child Whole Life Insurance |
| Coverage for a set period | Lifetime coverage |
| Acts as an add-on to an existing policy | Separate policy plan |
| Covers all current and future children | Covers one child |
| Cheaper than whole life insurance | More expensive than a rider |
| Can be converted into a permanent policy once children turn 25 | Has accumulating cash value |
Child Term Rider
A child term rider gives all your children life insurance coverage for a set period of time, typically until they turn 25.
Once your children reach the age of maturity, most policies provide the option to convert the rider into a permanent policy. During this process, the coverage amount can be changed. Most insurance companies put a limit on how much you can convert, but it’s usually up to five times the face amount of your policy.
For example, if your rider had a face amount of $60,000, you could convert the new permanent policy’s face amount to $300,000. Once your insurance provider approves the change, your child will now be responsible for the monthly premiums.
Child Whole Life Insurance
Unlike a rider add-on, child whole life insurance is an independent contract providing lifetime coverage to one child. If you’re the parent or guardian, you would be considered the policyholder for your child.
Keep in mind that child whole life insurance doesn’t have a high amount of coverage. The average coverage is under $100,000.
The accumulating cash value can help support college funds and general savings for your child’s future. However, the return rate for cash value is typically very low for child whole life insurance.
The premium price could cancel out any cash return benefits, making little to no profit for your child’s savings. It’s best to compare your options with an agent who can help you make a secure financial decision.
Why Should You Buy a Child Rider?
Child riders are much more affordable than child whole life insurance and can help give peace of mind over the financial and emotional stress of losing a child.
There are also long-term benefits of buying a child rider.
If you have a family history of pre-existing conditions, it could be difficult for your child to get approved for life insurance in the future. By getting insured early with a child rider, you can lock in lower premiums and get guaranteed acceptance since a medical exam isn’t required.
Frequently Asked Questions
- Special focus on content about life insurance, Social Security, Medicare and certificates of deposits (CDs)
- Research-based data drives her work
- Bachelor’s degree in English from the University of Central Florida
5 Cited Research Articles
- Insurance Dekho. (2021, August 18). Can I Add a Rider to An Existing Life Insurance Policy? Retrieved from https://www.insurancedekho.com/life-insurance/news/can-i-add-a-rider-to-an-existing-life-insurance-policy-2449
- Children’s Level Term Insurance Rider of SEC Annual Report. (2015). Children’s Level Term Insurance Rider. Retrieved from https://www.sec.gov/Archives/edgar/data/836249/000119312515293302/d848444dex9926dv.htm
- Children’s Insurance Rider of SEC Annual Report. (n.d.). Children’s Insurance Rider. Retrieved from https://www.sec.gov/Archives/edgar/data/1121997/000119312507230916/dex994e.htm
- Nationwide Mutual Insurance Company. (n.d.) Children’s Term Insurance Rider. Retrieved from https://www.nationwide.com/personal/insurance/life/riders/types/children
- Progressive Casualty Insurance Company. (n.d.). What Are Child and Spouse Life Insurance Riders? Retrieved from https://www.progressive.com/answers/life-insurance-child-spouse-riders/
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