What Is The Need For A Child Support Benefit Rider In Your Term Plan?
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A child rider is a type of life insurance rider, or an optional feature you can add to a new or existing term life or permanent life insurance policy. This rider adds life insurance for your children to your current policy, covers them until they become adults, and in most cases, allows them to convert to a policy of their own later.
If the worst happens, a child rider pays out a small death benefit if a covered child passes away. It’s an affordable way to get financial protection, so you can focus on spending time with your family.
How Does Child Rider Life Insurance Work?
You can add a child rider to your policy for biological children, stepchildren, or adopted children who are under 18. If your family grows during the life of your policy, those children can also be covered. In the case of a death, the rider provides a lump sum cash payment that can help cover final expenses, funeral costs, or fill an income gap if you need to take time off work.
Unlike children’s life insurance, which is a separate policy, child riders cover all current and future children, often until they turn 26. If your children are grown and the policy is about to expire, they can often convert the insurance rider into separate individual policies without having to get approved for life insurance again.
Conclusion
Adding a child rider to your insurance plan can help you protect your family and prepare for the unexpected. Some of the benefits include: Affordable alternative, Flexibility and Simple conversion.
