Question 63

Child term rider provides coverage for minor children.

A child term rider allows an insured individual to add coverage for their minor children under an existing whole life insurance policy, ensuring that they are financially protected.

A) child term rider.

This option is correct as a child term rider specifically provides term life insurance coverage for minor children, typically at a lower cost and without requiring separate policies for each child. It ensures that the insured's children are covered in case of unforeseen circumstances.

B) family income rider.

A family income rider is designed to provide a monthly income to the insured's beneficiaries for a specified period after the insured's death. While it offers financial support, it does not provide direct coverage for minor children, making it an unsuitable option for the insured's goal of covering their children.

C) family maintenance rider.

A family maintenance rider pays a specified amount for a certain period after the insured's death, which helps maintain the family's financial stability. However, it does not offer specific coverage for minor children, thus failing to meet the insured's intention to provide coverage for his son and/or daughter.

D) guaranteed insurability rider.

A guaranteed insurability rider allows the policyholder to purchase additional insurance coverage at specified times without undergoing medical underwriting. While it provides flexibility for future coverage, it does not specifically address the immediate need for coverage for minor children, making it irrelevant to the insured’s objective.

Conclusion

The child term rider is the most suitable option for providing coverage for minor children under the insured's existing whole life policy. Other options, while beneficial in different contexts, do not fulfill the specific requirement of covering the insured's children, thereby making them less appropriate for this scenario.