5 Strong Child’s Life Insurance Riders – Who Has the Best?

So you’re considering child’s life insurance. Or at least want to know more about it. Start here for an overview. In this article, we look at the 5 strongest child’s life insurance riders on term policies. You will find details on which companies have the best riders to protect every life in your family.

1. What is a child’s life insurance rider?
2. Term Children Rider Conversion
3. Why families choose to buy a child’s life insurance rider
4. The 5 best companies offering child insurance riders

Because we are an independent life insurance agency, we have access to over 70 of the top-rated life insurance companies. So call us at (888) 905-0333 because we can answer your questions. Including whether or not this is a smart decision for your family.

What is a Child’s Life Insurance Rider?

A life insurance child rider is an extra form of life insurance which you buy separately from your primary life insurance policy. This rider is specifically for your children so they have life insurance coverage to a particular age. The usual maximum age of coverage is age 25.

Most child’s life insurance riders are available when your child is as young as 14 or 15 days old. The rider must also be purchased before the child reaches 17 or 18 years of age.

These riders are available as both term and permanent policies such as whole life for example. Term children riders are the least expensive and the one which we would normally recommend.

Coverage for children are attached as “riders” to your life insurance policy. So you pay an additional premium for this rider. You have an option to pay annually or monthly.

Most insurers offer this coverage in terms of “units” or increments of $1,000 to a maximum amount such as $25,000. Each additional increment raises the cost of the premium paid for the rider.

These riders are very inexpensive and only cost a few extra dollars per month.

Term Children Rider Conversion Feature

Almost all children riders contain a conversion feature. This would allow the child to convert the term policy to a permanent policy near or just shortly after the maturity age of the rider.

Converting the term rider to a permanent policy will automatically provide the mature child with lifetime life insurance coverage. Since your child is still young and likely to be in good health, the cost of this conversion policy will be low.

One of the best features of this conversion option is that you can often apply for a coverage amount that is up to 5 times the amount of the initial coverage amount.

If your initial face amount was $20,000 for the term child rider, you can convert the policy to a maximum of $100,000 for example. Ongoing coverage will provide immediate protection when your children start their own families.

Many policies do not require a medical exam to convert the term rider into a permanent policy.

Reasons Why You Should Buy a Children Rider

You might think that a children rider is just another unnecessary expense. This is not the case because there are number of very good reasons to consider buying a term life insurance child rider.

A Child Rider Will Cover Funeral and Burial Expenses

Nobody wants to contemplate the death of their child. Life insurance for children is NOT about profit. That bears repeating because it is a common misconception when bringing up children’s life insurance. Life insurance for children is about covering funeral expenses, nothing else. It’s about avoiding any burden of debt from burial expenses in addition to the parent’s grief.

The average cost for the funeral of a minor in the United States is between $3,500 and $8,000.  These additional costs can be financially devastating. There are a couple of resources that can help with the financial costs, but they can limit options or be difficult to obtain.

A Child Rider Will Cover College Tuition Loans

Since the majority of children will survive their childhood, they may consider attending college. A college education is expensive. Most college age children will either take out a student loan or have their loans co-signed by their parents.

Parents, as co-signers of the loan, assume the debt if the unthinkable were to occur. A child’s life insurance rider can be a solution to offset or cover the college loan amount.

A Child Rider Will Cover Special Needs Children

Not all children are born healthy. There are many medical conditions that can impact the long term health of a child. Many children are born as autistic, or with other pre-existing health issues.

This is another reason to consider a term life insurance children rider. Some, but not all life insurance companies will insure a child without a medical exam. There are a handful of companies which will cover “All Risks” for a children rider. This is especially important for parents of special needs children to know.

And, because of the conversion feature, the child may be able to acquire a permanent policy when they convert the policy at the maximum age of coverage. This will provide the special needs child with life insurance protection for the rest of his or her life.

Keep in mind that there are many medical conditions in which a life insurer may automatically decline if the special needs child applies for life insurance later on.

5 Best Child’s Life Insurance Companies

Some child’s life insurance riders offered by life insurers are better than others. Although many of these riders are extremely similar, there are subtle differences that can make some children’s riders more preferable than others.

Here are Abrams Insurance’s top 5 Best Child’s Life Insurance Term Policy Riders:

1. American Amicable Life Insurance Company Child Term Rider

This is our number 1 top choice and we chose this company for a variety of reasons. The company does not underwrite the rider which is advantageous for special needs children and children with health concerns.

Let’s look at a quick preview of American Amicables’s Children Rider which includes:

Maximum Child’s Age – Policy can be purchased from 15 days – Age 17
Child Coverage Age – Policy anniversary following the child’s 25th birthday (or insured’s 65th birthday)
Insured Age (You – the purchaser of the policy) – Ages 18-50
Available Risk Factors – They don’t underwrite the policy or ask any health questions about the child
Coverage Amount Limits – $3,000 – $15,000
Amount Per Unit of Coverage – $3,000
Rider Conversion Feature – May exchange coverage for any permanent product in effect at the time. American Amicable will issue a new policy up to 5x the original death benefit (to a max of $75K). No later than policy anniversary following child’s 25th birthday, insured’s attained age 65 or insured’s death.
Why it makes the list – American Amicable does not underwrite their child riders and have a great conversion option when the child reaches adulthood.

2. Prudential Life Insurance Company Term Rider

Let’s look at a quick preview of Prudential’s Children Rider which includes:

Maximum Child’s Age – Policy can be purchased from 14 days from birth to age 17
Child Coverage Age – The earlier of the day prior to policy anniversary on or after child’s 25th birthday or insured’s 75th birthday.
Insured Age (You – the purchaser of the policy) – Between the ages of 18 -55
Available Risk Factors – Table A or Better
Coverage Amount Limits – $10,000 – $100,000 (They have the highest coverage amounts for a children rider, far exceeding most of their competitors)
Amount Per Unit of Coverage – $10,000
Rider Conversion Feature – May convert rider coverage on each eligible child covered by the rider at the policy anniversary following the child’s 18th, 22nd or 25th birthday up to 5x amount of coverage (minimum of $25,000)
Why it makes the list -Prudential has the highest coverage amount which, by extension, allows for a fantastic 5x conversion compared to its competitors.

3. Banner Life Child Term Rider

Banner Life (aka Legal & General) has caught our attention for term child riders that don’t ask any health questions. These are great options for special needs children or any child with medical concerns that might make qualifying for coverage difficult when they grow up. 

Maximum Child’s Age – 15 days to 18 years old
Child Coverage Age – Up to age 25 or the insured’s 65th birthday
Insured Age (You – The purchaser of the policy) – 20 to 55 years old
Available Risk Factors – They don’t underwrite the policy or ask any health questions about the child
Coverage Amount Limits – $5,000 or $10,000
Rider Conversion Features – The option to convert must be used before the child turns 25 or the insured turns 65, whichever is first. The new permanent policy will be the same benefit amount as the rider.
Why it makes the list – Banner doesn’t underwrite their child term rider, which allows families with special needs children or children who’ve overcome a medical condition to insure their child with a conversion to a permanent policy at age 25. 

4. SBLI (Savings Bank Life Insurance) Company Child Term Rider

Let’s look at a quick preview of SBLI’s Children Rider which includes:

Maximum Child’s Age – Policy can be purchased from 15 days – Age 22
Child Coverage Age – Child’s attained age 25 or primary insured reaching age 65
Insured Age (You – the purchaser of the policy) – Between the ages of 18-65
Available Risk Factors – All Risk Classes
Coverage Amount Limits – $1,000 – $25,000
Amount Per Unit of Coverage – $1,000
Rider Conversion Feature – Policy can be converted to any permanent product up to 5x the face amount when the child turns 25 or when the primary insured turns 65.
Why it makes the list – SBLI lets you add children up to age 22, one of the oldest options for adding a child term rider.

5. Assurity Life Insurance Company Child Term Rider

Let’s look at a quick preview of Assurity’s Children Rider which includes:

Maximum Child’s Age – Policy can be purchased from 15 days – Age 18
Child Coverage Age – Child’s attained age 25
Insured Age (You – the purchaser of the policy) – Between the ages of 18-55
Available Risk Factors – Standard or better (Non-Med), T4 or better (Full UW)
Coverage Amount Limits – $1,000 – $25,000
Amount Per Unit of Coverage – $1,000
Rider Conversion Feature – Purchase option available up to 5x the original face amount on earlier of child’s 25th birthday or rider termination date.
Why it makes the list – Assurity offers some of the lowest cost policies on which you can add a children’s term rider.

How Abrams Insurance Solutions Can Help

Our review of the 5 best term life insurance children riders provides a clear insight in how diligently our independent agents can find the best and most affordable term children riders.

Because Abrams Insurance Solutions has access to over 70 of the best rated life insurers we can find the right solution to fully protect your family.

We help our clients plan for the future because we work for you and not the life insurance companies.

If you want to learn more about the 5 best term life insurance children riders or about other alternatives then call Abrams Life Insurance Solutions right now at 858-703-6178 because we can help.