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life insurance for children

Children’s Protection Rider (CPR)

by Glenn on November 10, 2007

There are four common riders available on life insurance policies. In no particular order they are Accidental Death Benefit, Guaranteed Insurability Option, Disability Waiver of Premium, and Children’s Protection Rider (CPR). Out of all of those, CPR is the only product I routinely recommend.

In most cases putting life insurance on children doesn’t make financial sense. Paycheque earners have a need to financially protect their families in the event of their death. Not so with children. There are any number of sales techniques used to promote the sale of individual policies on children, but that’s what they boil down to – sales techniques.

Now, there’s one instance where I do recommend insurance on children. And that’s when it covers a small need and is dirt cheap. CPR covers both of those well.

Here’s the way most CPR riders work. For a small premium – typically about $50 a year for $10,000 – the insurance company will cover all of your children whether that be 1 child or 30. And they’ll cover them generally from the ages of 15 days old to somewhere between 18 and 25; that varies a bit by company.

In addition once the children are old enough not to be covered under CPR any more, some companies will let them purchase their own individual policy without evidence of insurability. So if one of your children became uninsurable in the future but was covered under your CPR rider at some point they could still have their own albeit small life insurance policy.

Here’s the neat part though – the insurer will cover all of your kids for the one single premium. The same $50 (or so) covers all your kids regardless of how many you have. Have more? In most cases they’re automatically covered once they’re 15 days old without any additional cost.

So while I rarely if ever think insurance on children is a good idea, with all those great features and in conjunction with a very low cost, I do recommend the purchase of a CPR rider for most people.

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