Tennessee Insurance Practice Exam

Which rider on a life insurance policy provides coverage for children?

1. Child rider

2. Dependent rider

3. Child term rider

4. Family rider

The correct answer is: Child term rider

The child term rider is specifically designed to provide life insurance coverage for the insured's children. This rider allows parents to add coverage for all of their children, often at a lower cost compared to obtaining individual policies for each child. It typically covers children from a specified age, usually from birth to a certain age, like 18 or 21, and may allow for conversion to a permanent policy when the child reaches adulthood. While the term "child rider" might seem appropriate, it is more commonly referred to as a child term rider in insurance terminology, as it specifically denotes the type of coverage and terms associated with children. Other options, like dependent rider and family rider, while they might cover broader family plans, do not precisely target children in the way the child term rider does, which is the primary distinction needed in understanding how these riders function within life insurance policies.