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What Is a Child(ren) Rider in Life Insurance?
<lingo>Some life insurance companies allow policyholders to purchase a children rider. This is a type of addition to an existing life insurance policy. It is designed to provide additional coverage to the individual who holds the policy. It pays out a specific amount of money if a child dies while the policy is in place. It is designed to help reduce the financial burden of a death like this on the family member. This type of rider is not automatically added to a policy but can be added at the time of securing the coverage.</lingo>
Child(ren) Rider Clearly and Briefly Explained
With a child(ren) rider, the life insurance applicant decides he or she wants to add a level of financial protection for their children. This component of the life insurance policy will pay out a set amount of money throughout the term if one or more children named within the policy die during that period.
Children do not usually earn money or support a family, which is usually the reason why a family may take out a life insurance policy. However, the cost of final expenses such as burial, end of life medical needs, cremation, and more so, can be very expensive. The use of this type of rider may help to alleviate at least some of those risks for the family.
<twitter>Some life insurance companies allow policyholders to purchase a children rider. This is a type of addition to an existing life insurance policy.</twitter>
Most of the time, this type of rider has very specific rules. For example, it can include any children named in the policy. This includes stepchildren, adopted children, and biological children. There is usually a limited amount of a waiting period associated with being able to file a claim. Most of the time, the policy will cover children who are at least 15 days old and who are under the age of 18, though some policies may extend this later age further. If a parent takes out a policy, any children born after the policy is put in place can still be covered by it. The amount of coverage depends on what the applicant selects, but it can range widely to meet any needs.
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