Child Protection Rider

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Child Protection Rider Also referred to as child insurance riders or child term riders allows you to add a child to your life insurance policy. This rider will provide life insurance coverage for the child, stepchild or legally adopted children of the Life Insured. Under this rider, you typically pay a flat rate fee regardless of the number of children you wish to insure. Generally, there is no underwriting required to qualify. This added coverage serves as a safety net for you so you can focus on your family instead of worrying about paying funeral expenses. If the worst happens, a child rider pays out a small death benefit if a covered child passes away. Child riders are added onto a parent's life insurance policy, typically at the time of purchase. Coverage is typically available for children 15 days of age to 18-25 years of age, depending on the carrier. Most riders will cover the child until they reach the “age of maturity” which is often age 25 or until marriage, whichever comes first, but may vary among carriers. There are several reasons that adding a children’s term rider to your life insurance policy can make sense; -The cost is low. “It’s definitely very cheap”. -It eliminates the burden of paying for final costs. -It can guarantee a child’s insurability. When a child term rider expires, coverage ends. But child riders are usually convertible, meaning you or your child can choose to replace the term coverage with a permanent life insurance policy without medical underwriting. 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. As a recap in an insurance policy a rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy. Riders provide insured parties with additional coverage options, or they may even restrict or limit coverage. A rider is also referred to as an insurance endorsement. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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