Child Term Rider

Written by Jeff Root

No parent wants to imagine there child dying but it does happen. Massachusetts has the lowest child death rates and Alaska has the highest.

Based on statistics from the Centers for Disease Control and Prevention, out of every 100,000 children between the ages of 16 deaths per year so the truth of the matter is it does happen and that is why protecting your family with the Child Term Rider is important.

How Does The Child Term Rider Work?

The Child Term Rider is a customized feature for life insurance policies which gives you peace of mind knowing that if the worst were to happen you do have a form of backup. These are Provisions with additional benefits not already included in your basic policy.

The rules are going to change from one company to the next so you should be cognizant of what each company has to offer. The premiums for this are going to be very low because there’s limited underwriting necessary.

This benefit allows you to add life insurance to your policy for your child. Obviously, again, no one wants to think about the loss of a child but if you were unprepared for it you could face difficult financial consequences during your time of grief.

This Child Term Rider gives you enough coverage for final expenses and some financial flexibility during your time of grief. It works the same way as an individual policy would work, a Term Policy. Your child receives coverage at a young age and they get to continue enjoying that coverage until they turn 18-25 or you as a parent reaches the age of 65, whichever comes first.

This varies from one company to another so make sure you read the fine print.

Also, when your child reaches what the life insurance company deems to be adult age, their coverage can be converted into term or permanent life insurance coverage if they choose.  This conversion from the Child Term Rider to individual coverage comes without the need for medical examination.

For this reason, the Child Term Rider is often popular among grandparents looking to leave a legacy for their grandchildren.

Which Life Insurance Policies Are Eligible For This Rider?

Anyone who has an existing term or permanent policy with a company that offers the Child Term Rider is eligible if they have children either naturally born or adopted who are under the age limit, typically 18, though some companies cover children through age 21 or even 25.

Who Is It Best For? 

Anyone who has children younger than 18 living at home should consider this benefit.  If you would be unable to cover the cost of a funeral should your child pass away unexpectedly it is absolutely worth the investment to have that piece of mind with the Child Term Rider. Anyone who has at least two or more children should absolutely consider using this feature.

Additionally, anyone with a young child in the family who might be experiencing medical problems or health complications at a young age should consider investing in this rider so that the child has the option of converting it once they reach maturity without having to disclose the health issues they currently have when trying to obtain new coverage.

They could easily convert the Child Term Rider into a permanent policy, and never have to face higher premiums because of poor health.

Pros and Cons


1. Little to No Underwriting Necessary for Child Life Insurance Coverage

When you utilize this Child Term Rider,  there is very little underwriting required. At most, they will ask you a few basic questions about the child in question.

The coverage is typically in effect for your children until they reach maturity. With many life insurance companies, this is 21 years of age but some companies allow it to go as high as 25.

2. All Children Are Covered Under the Child Term Rider 

With this benefit having the Child Term Rider applies to all of your children. You don’t have to take out extra features for each child. Additional children also do not cost more to fall under the coverage provided.

Perhaps most important is the fact that this policy Almost 100% of the time can be converted into a permanent life policy if your children so choose without a medical exam once they reach the age of maturity.

3. Affordable Life Insurance Coverage for Children with Health Problems

If children have serious health issues, this ability to get coverage without having to undergo medical exam could prevent them from trying to take out a policy and finding that it is prohibitively expensive or that they are denied coverage entirely.

When children opted to convert their coverage, they can receive up to five times higher than the original amount of their policy.


1. Be Sure to Read the Fine Print, Each Company Has Different Stipulations

The downside, of course, is that you have to be careful of when children are eligible. Every company has its own set of rules as to which children are eligible for coverage. Generally, companies will allow you to cover children between the ages of 15 days and 18 years but some companies set that initial age requirement at 6 months or extend the other end to cover up to 21 years.

You will need to provide basic information about your children’s health. With these features, you can typically cover your biological children, legally adopted children, and stepchildren. Any child that was born to you or adopted by you after you took out your insurance policy can be covered.

How Much Does It Cost? 

As mentioned the cost is rather limited compared to other benefits simply because the underwriting required is limited. These benefits are some of the most inexpensive premiums and could cost you no more than $40 per year if you fall under the preferred plus, non-smoker rate.

In many cases, you can choose the amount of coverage you want in increments of $1,000. If for example, you wanted 10 units of coverage which equals $10,000, and the life insurance company you choose quotes you $6 per unit, the total premium you would pay on an annual basis for that child would be $60 per year.

Now bear in mind that this $60 per year is for the rider itself not for each child so paying that $60 per year means that you can choose coverage for any and all children in your household without having to pay more money.

Similarly, if you were quoted $9 per month for $20,000 in coverage you would get the same $20,000 in coverage for all of your children at the flat rate of $9 per month.

Best Life Insurance Companies

Company A.M. Best Rating
Protective A+
Banner A+
Prudential A+
Lincoln Financial A+
North American A+
Phoenix Life B
Principal A+
American National A
Ameritas (FLX Living Benefits Products) A+
Sagicor A-
Assurity A-
Americo A
John Hancock A+
About Best Life Insurance Companies
About Best Life Insurance Companies

We work with individuals across the nation to secure the best life insurance rates.

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