Reasons to Buy a Child Term Life Insurance Rider
There are many advantages in opting to include a Child Term Rider when buying term life insurance.
- What is a child term rider?
- How does a child term rider work?
- How much does a child term rider cost?
- Reasons families consider term insurance for their children
- Finding an affordable child term rider
Why is a Child Term Rider an advantage?
There are no certainties in life and as both health issues and accidents can happen to anyone, including your children, you can ensure they are covered by life insurance.
What is a Child Term Rider?
A Child Term Rider is simply an extra form of life insurance coverage that you buy specifically for your child when you purchase a standard term life insurance policy.
How Does a Child Term Rider Work?
You buy the additional coverage in what is referred to as “units.” Each unit is equivalent to $1,000 in coverage. If you want to purchase $20,000 of coverage, you would buy 20 units.
You are charged a base rate for the amount of term life insurance for your own needs such as $250,000 or $500,000, PLUS you pay an additional premium for the rider coverage for your child or children.
This coverage must be purchased before the child reaches the age of 17.
Keep in mind that each life insurance company will assess both you and the child differently and in the amounts they charge.
How long does the coverage last?
Different companies have different cut off points but the coverage will end when the child reaches the age of 21, 22, or even 25 – depending on the company as the maturity dates differ. Sometimes you can convert the rider into a permanent policy.
How Much Does a Child Term Rider Cost?
The cost of these riders is surprisingly inexpensive and will depend on the number of units or amount of coverage you buy. It generally will cost you only a few extra dollars per month on top of your regular premium.
We have provided you with some examples of the price differential below.
We have broken down the costs to show the base rate that you would pay for your own term policy alone, and what it would cost if you bought a child term rider in the amount of $20,000 coverage.
We have broken this down into 3 age groups for males with ages of 25, 30 and 35 years old. We have included various amounts of term life insurance coverage for term policies such as $100,000, $250,000, $500,000 and $1,000,000 worth of death benefit coverage.
And, if any women are wondering what it would cost you, then we can simply say you would be paying even less.
The following samples are for “Preferred – Non-Smoking” rates and are for a 20 year term life insurance policy.
20 Year Term Sample Quotes Without a Child Term Rider
|25 Year Old Male||$11.03||$17.41||$28.79||$50.23|
|30 Year Old Male||$11.11||$17.41||$28.79||$51.98|
|35 Year Old Male||$11.55||$18.07||$30.10||$54.60|
20 Year Term Sample Quotes WITH a Child Term Rider
|25 Year Old Male||$21.03||$26.16||$37.54||$59.98|
|30 Year Old Male||$21.32||$26.16||$37.54||$60.73|
|35 Year Old Male||$21.75||$26.82||$38.85||$63.35|
(Life Insurance Calculator) – To compare rates from the nation’s leading life insurance companies for your exact age – please use the Instant Life Insurance Quote calculator to the right. The calculator on our website does not allow you to get rates with a Children’s Term Rider, but we will be happy to send you rates. For an exact rate, call us at 858-703-6178 or use the Ask a Question button on the right to email us.
If you want to get an idea of how much life insurance you need, please use our life insurance needs calculator which will help you determine the right amount for your own situation.
Reasons to Buy A Child Term Rider
Nobody likes to think that their child could die but unfortunately disease and accidents do happen.
Obviously, you don’t want to think about profiting from the death of your child and that’s not the reason why life insurers have this product.
So, consider the following as practical reasons why you would want to buy this rider for your child or children.
- It’s a very easy rider to buy because there are little or no underwriting requirements to buy this rider.
- The rider will provide your child with coverage to age 25 or so, depending on the company.
- One rider will cover multiple children in the household
- These riders are also convertible which means that you can convert them to a permanent life insurance policy without a medical exam and regardless of your child’s health condition. This can be very advantageous should your child develop a serious or life threatening health condition and not be able to qualify for life insurance later in life.
- Converting a child term rider to a permanent policy is also very affordable and you can usually convert the rider for up to 5x the amount of insurance depending on the company. That means if you had a $20,000 child rider, you could convert to $100,000 of permanent coverage for your child (regardless of your child’s health)!
- As you can buy this rider anytime before your child turns 17, you can also use this coverage to provide protection later if you child is planning to attend college and will need to take a student loan. College education is very expensive as a 4 year bachelor’s degree can cost up to $180,000. Should your child die before they complete college or just afterwards, the student loan still has to be paid. You might want to also read this article, Why College Students Seriously Need To Consider Buying Life Insurance.
- You also have to consider that the average cost of a funeral today in the U.S. is around $10,000 and this rider can be used to alleviate these costs.
- The final reason is that should your child die prematurely, the impact of their demise is bound to be emotionally devastating on you, your spouse and the surviving siblings. You may be required to return to work before you are emotionally ready and having those extra insurance proceeds may allow you to stay home a little longer and provide the ongoing support that your family needs.
How to Find an Affordable Child Term Rider
Finding an affordable child term rider for your child or children, along with finding an inexpensive term insurance or permanent insurance policy for yourself, is easy when you use the services of an independent agent such as you will find here at Abrams Insurance Solutions.
We have access to over 70 Major A Rated life insurance companies so we shop all of the companies on your behalf to find you the best rates for your particular situation. Whether you are in excellent health or have health issues such as Diabetes 1 or an Abnormal EKG, we can help you find affordable life insurance.
Call us today if you need advice or have questions at 858-703-6178 or send us an email to learn more and compare rates on a Child Term Rider for your life insurance policy.
We are expecting the first of several kids. If we get a term policy, combined with a Childrens’ Rider, do we have to purchase another Childrens’ Rider as each additional child arrives?
Hi Larry: No, you typically don’t need to buy another children’s term rider for future children. They are usually automatically covered when the child reaches 15 days or at the age the rider starts. Please reach out with any other questions.