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What is a life insurance child rider?



Examples of child riders

Let’s look at some examples to really understand what all this means.

Example 1

John Smith is 35 years old and wants to buy a 30-year insurance of 500,000 USD for himself from SBLI. He also wants to add a child rider to his insurance so that his two-year-old son and unborn daughter are insured in case the worst should happen. SBLI would require John to complete a questionnaire about his children before approving the driver’s coverage.

SBLI’s product guidelines for child riders *:

  • The minimum age a parent can be to buy a child rider is 18 years and the maximum age is 65.
  • The minimum age a child can be to be insured is 1
    5 days and they would be insured up to, but not including, their 25th birthday.
  • The minimum nominal amount that can be purchased is $ 10,000 and the maximum is $ 25,000.
  • The rider can be converted to a permanent policy with a nominal amount up to the maximum amount for the rider: $ 25,000.
  • A $ 10,000 rider costs $ 60 per year ($ 5 each month).

If John added a $ 10,000 child rider to his insurance, his two-year-old son would be insured for $ 10,000 and when his daughter is born and 15 days old, she would automatically be insured for $ 10,000. When John’s son turns 25, his son will lose coverage (unless he converts) but his daughter will still be covered until her 25th birthday.

John can convert these riders into permanent insurance for his children without having to prove their insurability, as long as he does so after their 18th and before their 25th birthdays. Usually, parents will also transfer ownership of the insurance to the child, but John has the option to continue to own the insurance if he wishes.

Example 2

Jim James is 40 years old and wants to buy a 20-year insurance of 500,000 USD on himself from Prudential. He also wants to add a child rider. He has an 18-year-old son from a previous marriage and a one-year-old son from his current marriage. Prudential would require Jim to fill out a questionnaire about his children.

Prudentials product guidelines for child riders *:

  • The minimum age that a parent can be to buy a child rider is 18 years and the maximum age is 55.
  • The minimum age a child can be to be insured is 14 days and they would be insured up to, but not including, their 25th birthday.
  • The minimum nominal amount that can be purchased is $ 10,000 and the maximum is $ 100,000.
  • The rider can be converted to a permanent insurance up to 5 times the amount of the child rider.
  • A $ 10,000 rider costs $ 51.50 a year.

If Jim added a toddler to his policy, his 18-year-old son would be covered until he turned 25th birthday but his one-year-old son would only be covered by the rider until he is 21 years old because Jim’s policy is a 20-year insurance policy.

Example 3

Jane Doe is 45 years old and wants to buy a 20-year insurance of 500,000 USD for herself from Banner Life. She also wants to add a child rider to her insurance so that her children are also insured. She has three children: twin boys aged 15 and a daughter aged 22.

The child rider would insure his twin boys, but since her daughter is older than 18 years, she would not be insured under the child rider.

Banner does not require any information, neither health nor otherwise, about children to be insured under a child rider.

Banners Child Rider Product Guidelines *:

  • The minimum age that a parent can be to buy a child rider is 20 and the maximum age is 55.
  • The minimum age a child can be to be insured is 15 days and the maximum age is 17 years.
  • The coverage for child drivers ceases to apply on the child’s 25th birthday or the insured’s 65th birthday, whichever occurs first.
  • The minimum nominal amount that can be purchased is $ 5,000 and the maximum is $ 10,000.
  • The rider can be converted into a permanent insurance.
  • A $ 10,000 rider costs $ 55 a year.

If Jane added a $ 10,000 child rider to her insurance, both of her boys would be insured for $ 10,000 until their 25th birthday, after which Jane’s insurance premiums would decrease by $ 55 annually because the child rider would drop out if she did not have any. other children to insure. The driver can be converted to permanent insurance, as long as it is done before the driver’s conversion due date.


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