What are Child and Spousal Riders? - Insurance Rider Series 6
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.
Series
What are Insurance Riders? - Insurance Rider Series Part 1
What is a Term Rider? - Insurance Rider Series 2
What is a Critical Illness Rider? - Insurance Rider Series 3
What is a Guaranteed Insurability Rider? - Insurance Rider Series 4
What is a Disability Waiver of Premium Rider? - Insurance Rider Series 5
What are Child and Spousal Riders? - Insurance Rider Series 6
What is a Return of Premiums Rider? - Insurance Rider Series 7
What are Paid-Up Addition Riders? - Insurance Rider Series 8
Next Steps:
We are Canadian experts in setting up strong life insurance plans for business owners, incorporated professionals, investors and their families. Where we shine is in the proper structure of your life insurance portfolio for maximum wealth protection, tax savings, business growth and legacy.
If this sound good to you, we're happy to meet and see if we can be a good fit to work together. Schedule a no-pressure Discovery meeting with one of our advisors using the button below.
Related Insights
How to Borrow from Yourself Safely Using Life Insurance
High-income Canadians know the value of liquidity—but too often, accessing capital means triggering taxes, taking on debt, or selling investments at the wrong time. What...
Are You Ready for the Strategy You Want?
We've noticed a pattern in client meetings over the past few weeks that we want to talk about openly. Business owners are coming in excited about...
RRSP vs. TFSA: Which Is Better for High Income Canadians
If you're a high-income Canadian, here's the truth: using RRSPs and TFSAs the wrong way could mean paying far more to the CRA than you...
The Million Dollar Baby Plan: Grow a Legacy for your Children
What if the birthday gift you gave your child today could turn into a million-dollar asset tomorrow? That's the idea behind the Million Dollar Baby...
Before You Sell Your Investments, Read This.
Markets are down, your portfolio took a hit, and you're wondering—should I sell now and cut my losses? Stop. Because selling during a market downturn...
Why Life Insurance Isn't Just for When You Die
If you think life insurance is something you'll never personally benefit from, you're missing the bigger picture. Permanent life insurance can provide liquidity, protect your...
Whole Life Insurance vs. Universal Life Insurance
Permanent life insurance can double as a powerful wealth-building tool—but not all policies are created equal. If you're an incorporated Canadian professional or business owner...
How Dollar‑Cost Averaging Is Helping Canadians Build Wealth
Between work, family, and everything else life throws at you—who has the bandwidth to watch the stock market every day? If you're a busy Canadian...
Must-Know Strategies for Business Owners Right Now
Over the past few weeks, our client meetings have shifted into a higher gear. The conversations we're having aren't about the basics anymore — they're about optimization. Business owners who already have insurance,...
Using Life Insurance to Fund a Buy-Sell Agreement
Imagine one of your business partners passes away tomorrow. Suddenly, their spouse or their kids own a share of your company—and you're expected to buy...
5 Mistakes High-Income Canadians Make With Their Wealth Plans
If more money automatically meant more wealth, every top-earning Canadian would retire stress-free. But that's not reality. The gap between earning well and building lasting...
What are Notional Accounts and How do They Work in Canada
If you've wondered what are Notional Accounts and how do they work in Canada, this is the post for you. Most incorporated Canadians are great...
