What Is a Child Rider?

Name: What Is a Child Rider?
Item: What Is a Child Rider?
Author: Nathan Paulus

Updated: October 3, 2024

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A child rider, also known as a child insurance rider, is an add-on feature to your life insurance policy. It provides specific financial benefits such as a death benefit or terminal illness benefit to the beneficiary in the event of a covered incident involving their biological children, grandchildren, stepchildren or legally adopted children. Children from two weeks to 25 years old may be covered by this rider, depending on the insurer's terms.

CHILD RIDER KEY TAKEAWAYS

A child rider is an optional add-on to your life insurance as a parent or guardian, providing a death benefit if the insured child passes away.
Child riders insure children as young as 14 days old and typically last until they are between 18 and 25.
You can usually convert a child rider to a permanent or whole life insurance policy without undergoing medical underwriting.
Child riders are generally more affordable than standalone child insurance policies.

How Do Child Riders Work?

Child riders provide a small amount of life insurance coverage for a child. They are often cost-effective and convenient, as they eliminate the need for separate policies, which are typically more expensive. When adding a child term rider to your life insurance policy, a flat fee covers current and future children, including stepchildren and legally adopted children. Some life insurance companies restrict adding a child term rider to new policies only, meaning it's not an option to add later. A child rider’s coverage usually lasts until the child reaches a certain age, anywhere from 18 to 25, depending on your insurer’s terms.

Additionally, if your child marries before reaching the policy's age of maturity, they may no longer be covered under the child term rider. It's important to discuss potential conversion to a permanent life insurance policy with your insurer and child before any such life changes, as the conversion is subject to the insurer's terms and conditions.

Why Add a Child Rider?

The uncomfortable reality is that the loss of a child can bring not only emotional distress but also financial strain. With the median funeral cost, including burial or cremation, ranging between $6,000 and $8,000, a child rider can alleviate the financial burden associated with such unforeseen circumstances. Though it's a scenario no parent wants to contemplate, having a child term rider in place ensures that during such a difficult time, the family is not burdened by the additional stress of funeral expenses.

Features of Child Riders

Child riders in life insurance policies can provide various benefits depending on your needs:

Rider Offerings	Description
Terminal Illness Benefit	This benefit provides a lump sum if an insured child is diagnosed with a terminal illness.
Accidental Death Benefit	This benefit grants the parents/guardian a lump sum in case of accidental death.
Conversion to Permanent Insurance	This option can convert the rider to a permanent life insurance policy once the child reaches a certain age without needing medical underwriting.
Cash Value Accumulation	This allows child riders to accumulate a cash value once the rider is converted to whole life insurance coverage.

These features ensure that a child rider on life insurance provides immediate financial relief and long-term security, making it a good addition for parents planning for their children's future security.

What Happens When a Child Rider Expires?

Most children cease to be eligible for child rider coverage between the ages of 18 and 25. You have several options when coverage expires, including converting to a permanent life insurance policy.

Coverage Loss

If the child rider is not eventually converted into a permanent policy, the child will lose life insurance coverage. This is because the child rider only covers children up to a certain age.

Conversion to Permanent Policy

You can convert a child rider to a permanent life insurance policy, but you must do it before it expires. No application or underwriting is required, and insurability is usually guaranteed, even if the insured’s health has deteriorated. Specific terms and conditions may vary by insurance company.

Apply for Individual Life Insurance

The insured will need to apply for a separate life insurance policy if the child rider is not converted before the policy expires. This new application will involve an underwriting process.

Adding a Child Rider to Your Policy

Insurers permit the addition of a child life insurance rider during or after the purchase of the parent's or guardian's policy. This adds to the policy’s premium, varying by the chosen coverage. Follow these steps to add a child rider to your existing life insurance policy:

1
Review Policy Options
Explore the available child riders offered by your insurance company and assess which ones align with your family's needs. It's advisable to understand each rider's specific benefits, such as death benefits, terminal illness benefits or the option for conversion to a permanent policy.
2
Determine Your Eligibility
Children are typically eligible for a child rider from as young as 14 days old until 18 years old, depending on the insurance provider. The parent's eligibility may also be affected by their age and health, with many insurers requiring the parent to be within a specific age range, commonly between 20 and 55, at the time of policy purchase.
3
Contact Your Insurance Provider
Initiate the process by calling or submitting a request online. Your insurance company will guide you through the necessary steps and provide the required forms and documentation.
4
Submit a Request
Complete all necessary forms and provide any documentation and information your insurance company requires.
5
Answer Underwriting Health Questions
Your insurer may ask health questions, which can affect the insurability of one or more children added to the policy.
6
Confirm the Policy Update
Ensure you receive a confirmation and review the updated policy to understand the coverage details and verify the inclusion of the child rider.

Cost of Adding a Child Rider

Adding a child rider to an existing policy incurs additional costs. Here are different cost implications that you may come across depending on your insurer:

Cost per Coverage: Some insurers offer child riders that cost between $5 and $7 per $1,000 of coverage. For example, a rider providing $15,000 worth of coverage could cost $75 a year or about $6 a month, whereas a $25,000 policy rider might cost $175 or roughly $15 a month.

Annual Costs: Some insurers offer fixed annual costs for child riders. For instance, $5,000 in coverage could cost $28 a year, while $10,000 in coverage might be $55 a year.

Coverage for Multiple Children: Child riders typically cover multiple children in one family under a single charge. For example, a $20,000 rider might cost around $100 or roughly $8 per month, but it covers every child in the family for the same price.

Child Rider vs. Child Life Insurance

Child riders and child life insurance differ mainly in coverage duration, amount and cost. Child riders offer limited-age coverage with one premium for all children, while child life insurance provides lifetime coverage with separate policies and the potential for cash value accumulation.

Features	Child Rider	Child Life Insurance
Coverage Duration	Until the child reaches a specified age, often 18 to 25.	Lifetime coverage is available as long as premiums are paid.
Coverage Amount	Ranges from $5,000 to $25,000.	Depending on the provider, higher coverage amounts range from $5,000 to $50,000.
Premium Cost	Cost added to policy premiums can go as low as $5 per $1,000 coverage.	Higher premiums than child riders.
Cash Value Accumulation	No cash value accumulation unless it converts to whole life insurance.	Some policies allow for cash value accumulation.
Ease of Application	Added to a parent’s or guardian’s life insurance with a straightforward process. May include health questions, but no medical exam is usually required.	Requires a separate application, often available online. Some policies may ask health-related questions but typically do not require medical underwriting.
Coverage for Multiple Children	One premium covers all eligible children in the family.	Separate policies and premiums are required for each child.

Child Rider FAQ

The following frequently asked questions shed light on child riders, a popular add-on that extends life insurance coverage to the young members of your family:

Which rider provides coverage for a child under a parent's life insurance policy?

The child rider on life insurance provides coverage for a child under a parent’s policy, covering incidents like death or illness up to a certain age.

What is a child rider on life insurance?

A child rider on life insurance is an add-on to a parent’s policy that extends coverage to include financial protection for children until they reach a specified age.

What is a child term rider?

A child term rider is a more specific type of child rider that provides term life insurance coverage for a child. This means that the coverage is temporary and is designed to last only for a specified term, typically until the child reaches adulthood or the end of the designated term. After the term expires, there may be options to convert the coverage into a permanent policy without further underwriting.

Are child rider benefits taxable?

Benefits from child riders on life insurance are generally not taxable as they are not considered income.

Can you remove a child rider from your policy?

Yes, you can remove a child rider from your policy anytime. But if you still have children eligible for coverage under the rider, it may be worth discussing with your life insurance agent first. A child rider offers the option to convert to a separate life insurance policy for each covered child, usually without requiring new medical underwriting.

What are the benefits of adding a child rider?

A child insurance rider is an affordable way to invest in your family’s well-being. One of its benefits is that it covers multiple children, including future kids, with one flat fee.

Do child riders provide lifelong coverage?

No, child riders provide coverage until the child reaches a specified age, often between 18 and 25. However, you can usually convert the child rider to a permanent life insurance policy, providing lifelong coverage as long as you pay premiums.

What happens to the coverage under a children's term rider when the child reaches a certain age?

When a child reaches the age limit specified in a children's term rider, typically between 18 and 25 years, the coverage expires unless converted to a permanent policy.

What is a juvenile life insurance policy rider?

In most contexts, a juvenile life insurance rider and a child rider are essentially the same. Both terms refer to a rider you can add to a life insurance policy that provides additional coverage for a child. These riders typically cover the child until they reach a certain age, at which point the coverage can either expire or, in some cases, be converted into a separate permanent policy. The terminology can vary between insurance providers, but the function is generally the same.

How do children's riders attached to whole life policies work?

Some insurers offer children’s riders attached to whole life insurance. These riders allow the policyholder to add coverage for their children to a whole life insurance policy. Typically, the rider provides death coverage and may also include other benefits, and it remains in effect until the child reaches the life insurance's child rider age limit.