Another rider choice offered by many life insurance companies is the Child Protection Rider (also known as a Child’s Life Insurance Rider). For an additional cost, Child Protection Riders offer value in two key ways: First, a financial cushion in the event that a child passes away. Second, when a child ages out of coverage, the policy can be converted into a permanent insurance policy as a gift for your child.
First, the Child Protection Rider offers a death benefit in the event that a child of the policyholder passes away. A child’s death is an unparalleled loss, but should the worst-case scenario occur, this rider is designed to offer financial support for parents during a time of unimaginable grief. A Child Protection Rider can cover funeral expenses, hospitals bills, and provide a degree of financial support if the parents need to take time off of work to grieve.
Fortunately, the vast majority of policyholders will never need to use the benefits provided by a Child Protection Rider. Each individual rider will specify a time frame of coverage, and most children age out of coverage in their early to mid-twenties. At this point, the policyholder usually has the option to convert their Child Protection Rider into a permanent life insurance policy.
The Child Protection Rider serves as a great way to provide protection for children without having to go through a separate process to secure coverage for them individually.
