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Children’s Term Rider in Term Insurance

TeamAckoNov 2, 2023

Term Insurance allows you the option to include certain add-ons to widen the life insurance coverage. As per one such add-on or rider, you can include your child in your Term Insurance policy. This is known as a Children’s Term Rider in Term Insurance. It comes at a cost but offers certain benefits in exchange. Know more about this additional coverage by reading ahead.

Children’s Term Rider in Term Insurance



What is the Children’s Term Rider in Term Insurance?

Children's Term Rider in Term Insurance is an optional feature that can be added to a parent's Term Life Insurance policy to secure additional protection for their children. This rider is a type of insurance policy that is designed specifically for children and provides a death benefit to the parents in the extremely unfortunate event of the child's unexpected death. The death benefit can be used to cover various expenses, such as funeral costs, medical bills, or other outstanding debts such as student loans, relieving the parents from the financial burden during the already difficult time. Note that this is also known as Child Rider in Term Insurance.

Advantages of Children's Term Rider

Here are the advantages of Children’s Term Rider (CTR).

  • Affordable premiums

The premiums for CTR are generally lower than the premiums for a standalone policy.

  • Flexible coverage options

CTR allows parents to choose the coverage amount and the duration of the policy. This flexibility enables parents to customise the policy according to their specific needs and budget.

  • Guaranteed insurability

Usually, CTR provides guaranteed insurability to the child, meaning they will be able to purchase a new policy without undergoing a medical check-up, even if they develop a medical condition later in life. This is a significant advantage as it eliminates the risk of the child being denied insurance coverage in the future.

  • Tax benefits

Children's Term Rider offers tax benefits to the policyholder. You as a parent can avail of the corresponding tax benefit for paying for this rider.

Drawbacks of Children's Term Rider

Here’s a list of disadvantages of Children's Term Rider.

  • Limited coverage period

CTR provides coverage for a limited period, usually until the child reaches a certain age. Once the coverage period ends, the policy terminates, and the child no longer has insurance coverage. If the parents want to provide lifelong coverage for their child, they will need to purchase a separate policy.

  • May not be necessary for all families

Children's Term Rider may not be necessary for all families. Parents should evaluate their insurance needs and determine whether this add-on is a necessary addition.

  • May not provide adequate coverage for certain situations

Children's Term Rider may not provide adequate coverage for certain situations, such as critical illnesses or disabilities. Parents should carefully review the policy documents and ensure that the policy meets their specific needs and requirements. If they need more comprehensive coverage, they should consider purchasing a standalone policy that provides more extensive coverage.

How does a Children's Term Rider work?

In this section, we will discuss how Children’s Term Rider works, including coverage options, eligibility criteria, benefits and features, and limitations and exclusions.

1. Coverage options

The CTR provides a death benefit in the event of the child's demise when the policy is active. The coverage typically continues until the child reaches the age of 25. The life insurance coverage amount can range from a few thousand rupees to tens of thousands of rupees, depending on the policyholder's needs and budget. Additionally, the coverage options may vary depending on the insurance company and policy terms. Some policies may offer coverage for accidental death or permanent disability, while others may only cover natural death. It is important to carefully review the coverage options before purchasing a CTR to ensure that it meets the specific needs and requirements of the family.

2. Eligibility criteria

In India, the eligibility criteria for CTR may vary depending on the insurance company and the policy terms. However, some common eligibility criteria for Children's Term Rider in India include the following.

  1. The child must be the biological or legally adopted child of the primary policyholder.

  2. The child must be within a certain age range, as specified in the applicable policy wordings.

  3. The primary policyholder must have an existing life insurance policy with the same insurance company before adding the Children's Term Rider.

  4. The policyholder must pay the required premium for the CTR as per the policy terms and conditions.

  5. The policyholder may be required to provide medical information about the child to the insurance company.

It is important to note that the specific eligibility criteria may differ between insurance companies and policies. It is advisable to carefully read the policy terms and conditions and consult with the insurance company to understand the eligibility criteria for CTR.

3. Benefits and features

CTR provides a death benefit in the event of the insured child's death. The death benefit can be used to cover the expenses associated with the child's funeral, medical bills, or any outstanding debts. It may also provide an option to convert the policy to a permanent life insurance policy when the child reaches a certain age.In case of the untimely death of the child, the death benefit received can be used to pay for the child's education loans or any outstanding educational expenses. This can be a significant relief for parents, who may otherwise struggle to pay off their child's education loans. 

4. Limitations and exclusions

When considering purchasing Children’s Term Rider in India, it is important to keep in mind that the policy may have certain limitations and exclusions. Some of the common limitations and exclusions include pre-existing medical conditions, accidental death, and suicide.

  • Pre-existing medical conditions refer to any health conditions that the child has before purchasing the policy. Insurance companies may exclude coverage for pre-existing conditions or charge higher premiums if they are included. It is important to disclose any pre-existing conditions accurately to the insurance company at the time of application to avoid any issues later on.

  • Accidental death is another limitation that may be included in Children’s Term Rider policies. Some insurance companies may not cover accidental death, or may have specific conditions under which accidental death is covered. 

  • In India, suicide is often excluded from coverage under Children’s Term Rider policies. This means that if the child dies by suicide, the policy may not provide any benefits to the family. The suicide exclusion period varies by insurance company, but it is usually two years from the date of policy purchase.

Comparison of Children’s Term Rider with other insurance options

It is essential to understand the different options and their features to make an informed decision based on your needs and financial goals. Here’s an overview of other options available other than CTR in Term Insurance. 

  • Whole Life Insurance policy for children

Whole Life Insurance for children is a permanent life insurance policy that provides coverage for the lifetime of the child. It also includes a savings component that builds cash value over time, which can be accessed in the future. Unlike CTR, Whole Life Insurance for children is not restricted to a specific age limit, and the coverage lasts for the lifetime of the child.One of the significant advantages of Whole Life Insurance is that it provides a death benefit and savings component. However, the premiums are usually higher than those for Term Insurance, including CTR.

  • Standalone Term Insurance

Standalone Term Insurance is a conventional life insurance plan that offers a predetermined coverage duration, usually lasting from 5 to 30 years. It guarantees a one-time payment in the event of the policyholder's demise within the term of the policy. 

  • Savings plans

Savings plans are life insurance policies that provide both insurance coverage and savings components. The premiums paid towards the policy are divided into two parts, a portion for the life insurance coverage and the remaining portion for investment in various financial instruments, such as stocks, bonds, or mutual funds. The savings component builds over time, providing a lump sum payment at maturity or as per the policy terms.

Savings plans can be a good option for parents who want to save for their children's future while also providing life insurance coverage. However, the returns on the investment component may vary depending on the market performance, and the policy may have a lock-in period, which can limit the liquidity of the investment.

Table of comparison between various insurance plans and Children’s Term Rider






Provides coverage for children up to a certain age

Provides lifetime coverage for the child

Provides coverage for a specified term

Provides returns on investment


Affordable premiums

Higher premiums compared to Children's Term Rider

Premiums are generally lower than Whole Life Insurance

Premiums depend on the investment plan chosen


Flexible coverage options

Less flexible compared to Children's Term Rider

Provides coverage for a specific term

Flexibility depends on the plan chosen

Guaranteed insurability

Guaranteed insurability for the child

Guaranteed insurability for the child

No guaranteed insurability

No guaranteed insurability

Tax benefits

Tax benefits available

Tax benefits available

Tax benefits available

Tax benefits available

Coverage period

Coverage period is limited to a certain age

Provides lifetime coverage for the child

Coverage period is limited to a specific term

Coverage period depends on the investment plan chosen

Benefits on maturity

No maturity benefit

Usually, maturity benefit paid on the child's 18th, 21st or 25th birthday

No maturity benefit

Maturity benefit paid at the end of the investment plan

Frequently Asked Questions

Below are some of the frequently asked questions on Children’s Term Rider in Term Insurance


What happens to the policy if the premium is not paid on time?

If the premium is not paid on time, the policy will lapse. Some insurance companies may offer a grace period to make the payment, but if the policy is not revived within the grace period, the coverage will end.

Can Children's Term Rider be added to any life insurance policy?

No, not all life insurance policies allow Children's Term Rider to be added. It is important to check with the insurance company and read the policy terms and conditions.

Is it necessary for the child to undergo a medical check-up for a Children's Term Rider?

It depends on the coverage amount and the insurance company's underwriting policy. In some cases, a medical check-up may be required, while in others, it may not be necessary.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.


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