Adding a Child Rider to Your Policy
If you're considering adding a child rider to your policy, then you might want to get some more clarification on it first. First of all, a child rider is not to give your child benefits in the event that you pass away. That is what a beneficiary designation form is for, and with some help, you can set this up with your broker. They will help you make sure that your documentation is in order so there will be no legal questions later.
The rider to a policy for a child simply ensures that they will have insurance coverage without a specific group life coverage policy of their own. Rather than having them apply for a child policy where they will be able to have it under their name, they can instead ride along yours and be able to convert that when they reach a certain age. It's not a separate plan of life insurance coverage, and they don't have to go through any medical exams themselves. Health questions won't be a bother and it doesn't take very long to complete the process.
Benefit of Applying Young
One of the reasons this works especially well is because they are children and they are usually considered young and healthy. Most children do not have to deal with major health conditions and this gives them the chance to establish a life insurance policy early in life. It also gives them a way to earn some money in the form of a savings account without actually having to put money aside themselves. Once they reach the legal age, they will be able to convert the cash portion to a financial benefit or continue on with the policy in place under their own name.
There are companies who offer life insurance for children that are as young as newborns, but these require their own payment each month. The benefit of having a policy rider is that you don't make a separate payment, but you are basically getting two policies for the cost of one. Depending on who your provider is, there may be certain procedures that need followed and paperwork that needs to be filled out. More companies are offering this service through the Internet so they can help consumers from all over, even without a local office to handle face-to-face appointments.
Obtaining Life Insurance through Employers
Another way to acquire this kind of coverage is by obtaining a life insurance policy through your employer. There may be a time period you have to endure before you can add a child rider or you might be able to do it as soon as you apply. These group plans are usually not personalized but they will give you an opportunity to have a good amount of financial backing in case something does happen to you unexpectedly. Ask your employer's provider what the additional cost will be out of each check in order to add your children to your coverage like this.
You can also use some common research sources to obtain data on adding a child rider to your policy, and this can help you understand what exactly is required from you. If you decide to do this, you might feel more confident as you approach the task because you'll have answers to the basic questions and be able to talk to your broker about the more complicated details. They may have a way to do this over the web as well, in order to reduce the paperwork that must be filled out by hand.