Child Term Rider

• The children's plan in life insurance consists of a child term rider attached to a parent's permanent policy. Most carriers limit the total death benefit of the rider to $10,000, but place no restrictions on the number of children protected by the rider.
  
  

Guaranteed Convertibility

• Children covered by a child term rider enjoy contractual guarantees permitting conversion of the children's plan benefit to their own policies after the age of 18. All dependents who were covered by the children's plan must be issued their own individual life insurance policies if they are requested after their 18th birthdays. No medical underwriting is permitted, and the child's health status is irrelevant in determining eligibility or premium.
  
  

Permanent Coverage

• Children's plan benefits converted by emancipated dependents usually may not include term insurance policies. The vast majority of carriers restrict the conversion of child term riders to universal life or whole life products.