70. An insured owns a whole life insurance policy on himself. He would also like coverage for his minor son and/or daughter. One way the insured can accomplish this goal is to purchase a
Answer: A
The insured can purchase a child term rider to cover his minor children.
A child term rider allows the policyholder to add coverage for his minor son and/or daughter under an existing whole life insurance policy. This rider provides a death benefit for the insured’s children until they reach a certain age, typically 18 or 21, ensuring that they are financially protected during their early years.
A) child term rider.
This option is correct as the child term rider specifically provides insurance coverage for the insured's minor children. It allows parents to include their children in their life insurance policy at a lower cost than purchasing individual policies for each child, making it a practical solution for extending coverage.
B) family income rider.
The family income rider is designed to provide a monthly income to the insured's beneficiaries for a specified period following the insured's death. While it offers financial support, it does not provide direct life insurance coverage for minor children, making it irrelevant to the question at hand.
C) family maintenance rider.
The family maintenance rider pays a monthly income to the beneficiaries for a certain period after the insured's death, while also providing a lump-sum benefit. Similar to the family income rider, this option does not extend coverage to minor children and thus does not fulfill the insured's goal of providing coverage for his children.
D) guaranteed insurability rider.
The guaranteed insurability rider allows the policyholder to purchase additional insurance coverage at specified future dates without undergoing medical underwriting. Although it provides flexibility for increasing coverage in the future, it does not directly offer coverage for minor children, which is the primary need expressed in the question.
Conclusion
The child term rider is the most suitable option for providing life insurance coverage for the insured's minor children, as it directly meets the insured's goal of extending protection to his family. Other options either focus on income replacement or future coverage without addressing the immediate need for child coverage, making them inadequate in this context.