Life insurance riders are coverage supplements that customize the terms of your policy or add extra protection under specific circumstances. A child rider is an add-on that provides a small death benefit if any of your children die while your policy is active.
How do you get life insurance for your child?
There are two options when it comes to buying life insurance coverage for children: a child rider added to your term life insurance policy or a standalone whole life insurance policy for your child.
Child life insurance policies only make sense in rare circumstances due to their high premiums. Child life policies are a type of whole life insurance, so they don’t expire.
A child rider is also known as a child term rider or child insurance rider. One child rider typically covers all of your children and any children you have in the future. It’s significantly less expensive than a child life insurance policy.
→ Learn more about understanding your life insurance policy
How do you add a child rider to your term life policy?
Most insurers allow adults age 18 to 65 to add child riders to their term life insurance policies, though some companies require you to be older than 20 or younger than 55 at the time of application.
You usually add a child rider when you’re buying your policy. You can indicate on your application whether you want to add any riders or special features.
Some insurance companies don’t offer child riders in certain states due to insurance regulations.
The agent you’re working with will be able to help walk you through options. At Policygenius, our experts are licensed in 50 states and can help you compare and choose from policies tailored to your needs.
In some cases, insurance companies let you add a child rider after your policy is active, but not all insurers have the same guidelines.
Companies also have different restrictions around:
Maximum death benefit for child riders
Maximum age of the children covered
Medical information required for the rider
When the child rider expires
Whether the rider is convertible into child life insurance
Your children don’t have to take a medical exam for you to add a child rider, but you may have to take one for the policy to become active. However, some insurance companies do ask medical questions about your children. If your child has a pre-existing condition, your rider may not cover them.
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How much does a child rider cost?
You can add a $10,000 child rider to your term policy for as little as $4.20 per month, whereas a child life insurance policy would cost at least $45 per month or more.
The cost of the rider is added to your yearly or monthly premium.
Using the above example, a child rider with $10,000 of coverage would cost about $50 a year in premiums.
This coverage is separate from your base policy. In this scenario, if you have $500,000 coverage for yourself, the $10,000 for your child would be additional.
Does a child rider cover multiple children?
In most cases, one child rider covers all current and future children in your household, including birth children, adopted children, and stepchildren.
Grandchildren aren’t covered under a child rider in most cases, although they may be covered if the grandparent has legal guardianship and is younger than age 55 or 60, depending on the insurer.
You can usually buy coverage for children between 15 days and 18 years old. Riders last until your child reaches age 25 or you reach age 65 or age 75, depending on the insurer that issued your policy.
→ Learn more about life insurance riders
Child riders by life insurance company
Here’s how many insurance companies handle child riders on term life insurance policies.
Company | Eligible ages | Coverage amount | Annual cost per $1,000 | Asks medical questions? | Add to active policy? |
|---|---|---|---|---|---|
15 days to 18 years | $500 to $25,000 | $5.00 | Yes | Yes | |
15 days to 18 years | $5,000 or $10,000 | $5.50 | No | No | |
15 days to 18 years | $1,000 to $15,000 | $5.00 | Yes | Yes | |
15 days to 20 years | $1,000 to $10,000 | $7.20 | No | No | |
15 days to 18 years | $1,000 to $10,000 | $5.50 | Yes | Yes | |
15 days to 18 years | $1,000 to $25,000 | $6.00 | Yes | Yes | |
15 days to 18 years | $10,000 to $100,000 | $5.15 | Yes | No | |
15 days to 17 years | $1,000 to $10,000 | $4.20 | No | No | |
15 days to 18 years | $1,000 to $99,000 | $6.00 | Yes | Yes |
Methodology: Information based on policies offered by Policygenius as of 09/01/2023.
What happens when a child term rider expires?
Before the child rider expires, you can either convert it into an individual life insurance policy or let the coverage run out.
If you let the rider expire, your child would then need to apply for their own life insurance coverage as an adult.
Most child riders can be converted into a permanent life insurance policy with up to five times the amount of the original rider’s coverage. If you have $10,000 in coverage on your child rider, you might be able to convert it to a $50,000 whole life policy for your child.
However, permanent policies are significantly more expensive than term life policies. Permanent life insurance is usually best suited for high-net-worth individuals or people who have dependents who require lifelong care.
If your child has a health condition that may prevent them from qualifying for a policy on their own, you may want to consider a permanent life insurance policy for them. Otherwise, they’ll be able to find a cheaper policy once they reach adulthood.
We don’t recommend buying separate life insurance policies for children, but child riders are an inexpensive way to get the most out of your life insurance policy.
If the cost of a funeral would cause your family financial trouble, consider adding a child rider to your term life insurance coverage.
→ Learn more about the differences between term life and whole life insurance
Frequently asked questions
What is a child rider on a life insurance policy?
A child rider is an inexpensive, optional add-on to your life insurance policy that pays out a small death benefit if any of your children pass away.
Can you take life insurance out on a child?
You can buy whole life insurance for children, but it’s costly. Most children don’t need their own policy because they don’t make income for their family.
When can you add a child rider to your life insurance policy?
It depends on your insurance company. Many people add a child rider during the application process. Some companies allow you to add (or drop) a child rider after your policy is active, but some don’t.
What does a child rider pay for?
The payout from a child rider can be used for anything, including funeral expenses.
