How Do Child Riders On Term Life Insurance Work?

How Do Child Riders On Term Life Insurance Work?

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Many life insurance plans offer the opportunity to add additional coverage options called riders. Riders come in many forms and have different benefits for the insured person and their loved ones. Today we’re looking at the child rider. What is a child rider on term life insurance, and how does it work?

What is a children’s life insurance rider?

As with other life insurance riders, a children’s life insurance rider is an add-on to a life insurance plan. A child life rider pays out a tax-free death benefit if one of your children passes away. The rider helps cover final expenses, so your family has the financial security they need during a difficult time. A child rider can also be converted to a life insurance plan when your child reaches adulthood. 

Child rider vs. child life insurance

Typically, there are two options for insuring your children: a child rider added to a plan and a child life insurance policy.

Child rider

As we mentioned above, a child rider is an add-on to a life insurance policy. A rider provides coverage for all of your children and any future children you may have. A child rider is a more cost-effective way to ensure your family is financially protected if something happens to your child.

Child life insurance plan

There are whole life insurance options available for children, but they come at a much higher cost than a child rider. Since these are generally much more expensive, there aren’t many times where this would be a good option over a rider. If you are worried about your child applying for a life insurance plan as an adult because they have an illness now, a child life insurance plan may be a good idea.

How does a child rider work?

For most life insurance companies, children between the ages of 15 days and 18 years old can qualify for the rider. Typically the rider lasts until your child is 25 or when you reach age 65, whichever comes first. 

When your child is approaching age 25, you can convert their plan to a permanent life insurance option and start their adult years with reliable coverage. This conversion happens without needing a medical exam or undergoing any other requirements of the life insurance approval process.

After a claim is approved, your family can then use the rider’s tax-free benefit in any way they choose. From covering final expenses to ensuring any remaining debts are paid off, the benefit can help your family in several ways.

The benefits of adding a child life rider to your term life insurance plan

  • One flat fee. The child life rider only requires one flat fee when adding the additional coverage to your life insurance plan.
  • Covers multiple children. A child life rider covers multiple children and any future children you plan to have later in life. 
  • Convertible to a permanent plan. You can convert the rider into a permanent life insurance policy for your children as they reach adulthood. This process is straightforward, and doesn't require a medical exam to qualify.
  • Coverage regardless of your child’s health. The rider will always provide complete financial security for your family, even if your child develops a severe illness or condition as they grow up.
  • The rider remains active into adulthood. With most riders providing coverage until your child reaches age 25, the coverage will remain active even if they get married or undergo any other major life milestones.

Are there any exemptions?

  • The insured has to be between a specific age range. You need to be between 20 and 55 if you want to add a child life rider to your plan.
  • A child life rider can’t work with other riders. You cannot use a child life rider in conjunction with other term life riders on a plan.
  • Only unmarried children qualify. While children who get married while already enrolled can continue with the rider coverage, those who are married before being enrolled cannot be eligible for the rider. 
  • Accidental death doesn’t extend to the child rider.  Most life insurance plans have additional accidental death coverage that ensures the insured person is covered if they pass away due to an accident. Unfortunately, this extra coverage does not extend to children on the child life rider.
  • The rider is only available on new policies. The only opportunity to add a child life rider to your plan is when you are applying for a policy. Once you’ve purchased the plan, you generally cannot add the child rider to your coverage.

Affordable term life insurance coverage

If you are in the market for an affordable term life insurance plan, Termlite has a range of options available to you. Our term coverage offers a wealth of benefits, including up to $1,000,000 in coverage and no medical exams.

Get your free no-obligation quote now and discover your term life insurance options.


Written by: Adam Bianco

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