A life insurance plan is valued as a financial benefit for the family in the event of the unexpected demise of the life insured. The benefit will help the family reduce the financial burden. The benefits from a life insurance plan can be enhanced by including add-on riders^#. It provides additional financial support apart from life coverage for the insured. There are different types of riders^# in life insurance. A child rider^# is one such add-on option! Here is a detail about what it means and how it is beneficial.
 

Before we get started, let us understand what a rider^# means.
 

What Are Riders^# In Life Insurance?
 

A rider^# in a life insurance plan is an add-on option that provides additional financial benefits during the specified scenario in addition to the life cover for the policyholder. Therefore, it is available at an additional premium cost. The riders^# depend on the life insurance company and their policy terms and conditions.
 

Every rider^# has their specific financial benefits. For example, some waive paying the future premiums for the base plan if the policyholder gets affected due to a total and permanent disability due to an accident during the policy term and is unable to make the premium payments.
 

What Is Child Rider In Life Insurance?
 

 

A child rider^# in life insurance will provide a small death benefit to the policyholder in the event of the unexpected death of their child during the policy term.
 

Factors To Consider
 

Insurers provide the child rider^# life insurance based on their specific policy terms and conditions. Therefore, it is important to consider certain factors with the insurance provider to ensure the benefits.
 

• The age criteria for the adult parents. Generally, adults older than 18 and younger than 60 will be allowed to purchase the rider^# child option.
• The maximum coverage provided as the death benefit in the event of the child's death.
• The maximum age upto which the child is covered under the rider^# option.
• The necessary medical reports for the child required to purchase the rider^#.
• Whether the child rider^# has the option to get converted into a child insurance policy.
   

How Does The Child Rider^# In Life Insurance Work?
 

The child rider^# will provide the death benefit in case of the child's death during the policy term. One child rider^# is applicable for multiple children born and also to be born. It also applies to adopted and stepchildren. Generally, the rider^# benefits last until the child reaches 25 years of age. However, these features are subject to individual insurance providers' terms and conditions.
 

If the child has a pre-existing health condition, informing the insurer during policy inception is important to avoid discrepancies during claim settlement.
 

As the rider^# benefit ends its term, you can convert it to a life insurance policy. The application procedures and the other conditions will be further based on the adult life insurance policy.
 

Benefits Of Purchasing A Child Rider

Although the child rider^# is available at an additional cost, it is worth the purchase considering the following benefits.
 

• Provides a financial benefit in the event of the child's unexpected death. Although a parent might not require the funds spent on raising the child, the financial benefit can be used to clear off any debts, pay for the funeral expenses, etc.
• The rider^# benefit is cost-efficient opposed to purchasing a life insurance plan for the child separately.
• The child rider^# provides the option of converting it to a life insurance plan without undergoing the complete application procedures.
   

Limitations Of Child Rider^# In Life Insurance
 

While purchasing the child rider^#, it is important also to know the limitations.
 

• Less coverage - The sum assured for the child rider^# life insurance is less than other regular life insurance plans.
• Possibility of early termination - Some insurers have a maximum age set for the parents. Therefore, the child rider^# might terminate before the child becomes 25 years old.
• Conversion limitations - If the insurer does not allow for conversion, the sum assured will run out without providing a benefit.
   

Conclusion
 

Riders^# in life insurance plans extend the financial benefit offered to the policyholders apart from the life coverage. A child rider^# is one such add-on benefit that provides a small death benefit in the event of the unexpected demise of the child of the life insured. The rider^# can be converted to a life insurance plan as it matures. However, the basic features are based on the policy conditions of the individual insurance providers. Therefore, it is important to understand the policy features before purchasing child rider^# life insurance. 

L&C/Advt/2022/Oct/2438