What are Child and Spousal Riders?
Welcome to our seventh week of posts all about insurance riders, where we have been informing you about all the types of insurance riders.
We recommend you go back and read the previous posts if you haven’t to better understand this post, starting with the first about insurance riders in general.
This post will be covering child and spousal riders, what they do, who should get them, and how they benefit you as the policy holder.
What is a child rider?
A child rider provides life insurance for the child of the insured.
This includes natural-born children, stepchildren, and adopted children. A single child term rider will cover all children, including those not yet born.
The purpose of the rider is to provide a small death benefit if any of the included children die while the life insurance policy is active.
The coverage usually does not exceed $30,000.
If the unthinkable happens, the payout can help parents cover the funeral costs, pay for counseling, or take time off work to grieve.
Your children will not need to undergo a medical test. However, some insurers may ask questions related to their health.
If a child has a severe underlying condition, the insurer may refuse to cover them. So, if you have multiple children, it is possible that some may get coverage while others may not.
Generally speaking, children are covered until they turn 25. Once they are older than 25, they may choose to convert the term coverage into a permanent insurance policy.
What is a spousal rider?
A spousal rider gives your spouse coverage under your policy.
In other words, you and your spouse will be covered under the same policy.
Compared to buying a separate life insurance policy for your spouse, a spousal rider is less expensive, which is one big benefit.
However, for the most part it offers less coverage than having two separate policies.
For a rider like this you will want to speak to an advisor and discuss what will best fit your current needs.
Contact Us
At Safe Pacific Financial, we specialize in helping Canadian business owners, incorporated professionals, and investors structure life insurance for maximum wealth protection, tax savings, and business growth.
If you would like to discuss whole life insurance or investments, we’re happy to chat and see if we can be a good fit to work with you. Fill out our contact form and we will get back to you within 24 hours on business days.
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