Texas Life Agent Practice Exam

To add coverage for a child to a Whole Life policy, which rider should be purchased?

1. Child term rider

2. Family income rider

3. Level term rider

4. Spouse rider

The correct answer is: Child term rider

The child term rider is specifically designed to provide coverage for children under a whole life policy. This rider allows the policyholder to add a death benefit for their children at a lower cost compared to standalone policies. It typically covers children from the ages of 15 days to 18 years, and in many cases, it can be converted to a whole life policy when the child reaches adulthood. This option is tailored to meet the needs of families wishing to secure life insurance coverage for their children without the higher premiums that would accompany individual child policies. In contrast, the other riders mentioned, such as the family income rider, level term rider, and spouse rider, serve different purposes. The family income rider provides income replacement, the level term rider gives coverage for a specific term for the policyholder, and the spouse rider adds coverage for a spouse, but none of these options focus on providing coverage specifically for a child. Therefore, the child term rider is the appropriate choice for adding coverage for a child to a whole life policy.