Question 21

An insured can purchase a child term rider to cover his minor children.

A child term rider allows the insured to add coverage for their minor son or daughter under their existing whole life insurance policy, ensuring financial protection for their children at a lower cost.

A) child term rider

This option is correct as a child term rider specifically extends life insurance coverage to the insured's minor children. It provides a death benefit in the event of the child's passing, typically at a lower premium rate compared to individual policies for each child.

B) family income rider

A family income rider is designed to provide a monthly income to the insured's family in the event of their death, rather than covering children specifically. While it offers financial security, it does not fulfill the goal of providing coverage for minor children.

C) family maintenance rider

The family maintenance rider focuses on providing a specified amount of income over a certain period after the insured's death, but like the family income rider, it does not extend coverage specifically to minor children. Thus, it does not meet the requirement outlined in the question.

D) guaranteed insurability rider

The guaranteed insurability rider allows the insured to purchase additional coverage in the future without medical underwriting, but it does not provide direct coverage for minor children. Therefore, while it offers flexibility for the insured, it does not address the specific need for child coverage.

Conclusion

The child term rider is the only option that directly addresses the coverage need for minor children under the insured's whole life policy. All other options either focus on different types of coverage or do not provide the intended protection for the insured's children, making the child term rider the definitive choice.