The Child Protection Rider (CPR) is additional insurance added to your original Whole Life Insurance policy that provides coverage for your child in case of death. Many life insurance agents who speak about Child Insurance Rider or the CPR, do so by explaining to parents that all emotions must be set aside when choosing to buy this rider. Most people don’t like the thought of outliving their children, but this rider does more than insure payment at the time of a child’s death, it really provides living benefits for your child.
Facts about the Child Protection Rider
The CPR can be added to your policy for a very small premium (maybe an additional $50 a year). This coverage is essentially a term policy that lasts until your child is anywhere from 22 to 30 years old. When your child is ineligible for coverage, the policy can then be converted into a permanent policy that has up to five times the face amount (death benefit) than what the term policy had.
Also, the Child Protection Rider covers more than one child at one time. You pay an annual CPR premium for a low dollar amount and it covers existing children but also children that are yet to be born.
Since each child covered under the Child Protection Rider goes through minimal medical underwriting, when their coverage gets converted into a permanent policy, there is no need for an additional medical exam.
Each life insurance company has a different set of rules and regulations for any rider, and the same goes for children insurance which can make the price and age limit of coverage vary.
- One premium for all children
- Low-cost premium
- Converts to a permanent policy
- Nominal medical underwriting
In the event of tragedy, of course the Child Protection Rider will help to fund any funeral expenses, as well as provide the bereaving family with a financial cushion. This added income at such a stressful time can benefit a family with any emotional healing process that needs to take place.
The Value of the Child Protection Rider
If you as a policy owner are using your life insurance to grow wealth and leave a family legacy, then purchasing the CPR is a simple and efficient way to gift your children a permanent life insurance policy.
When your child reaches adulthood and you convert the CPR into their own policy, they can start to personally reap the same infinite banking benefits that you used yourself. The goal is to gift not only a life insurance policy to your children, but more importantly gift a financial education that can be passed down through many generations.
Listen: Leave Your Legacy