Answer Explanation:

The correct answer is B) Term rider. A term rider is a life insurance product that covers children under their parent’s policy. Let’s delve into the details of why this is the correct answer and why the other options are not suitable for covering children under a parent’s life insurance policy.

B) Term Rider (Correct Answer):

A term rider is an add-on to a parent’s life insurance policy that provides coverage for their children. It is a cost-effective way to ensure that the financial needs of the children are met if the parent passes away during the term of the policy.

The term rider typically covers children from infancy to a certain age, often up to 25 or 26 years old, depending on the insurance company and the specific policy terms.

In the event of the parent’s death, the rider pays out a death benefit to the family or the guardian of the children, helping to provide for their financial security. It’s important to note that a term rider specifically covers children and is usually added to a parent’s term life insurance policy.

A) Family Maintenance Rider:

A Family Maintenance rider is an option that can be added to a life insurance policy, but it is not designed specifically to cover children. Instead, it is intended to provide additional income to the surviving spouse or family members in the event of the insured’s death.

This rider may help maintain the family’s financial stability by providing a regular stream of income, but it does not offer direct coverage for children’s needs. Therefore, option A is not the correct choice for covering children under their parent’s policy.

C) Family Income Rider:

Similar to the Family Maintenance rider, the Family Income rider is designed to provide an additional source of income to the family in the event of the insured’s death. It pays out periodic income rather than a lump sum.

While this rider can indirectly benefit children by helping to support the family’s financial needs, it does not provide specific coverage for children under their parent’s policy. Therefore, option C is not the correct choice for covering children.

D) Payor Benefit:

A Payor Benefit rider is a type of rider that is typically associated with juvenile life insurance policies. It is designed to cover the premiums of the policy if the person responsible for paying the premiums, usually a parent or guardian, becomes disabled or passes away.

While this rider indirectly helps maintain the life insurance coverage for a child, it is not a direct coverage for the child’s financial needs. It ensures that the policy remains in force but does not provide a separate death benefit or coverage for the child’s expenses.

Therefore, option D is not the correct choice for covering children under their parent’s policy.

In summary, the correct answer is B) Term rider because it is specifically designed to provide coverage for children under their parent’s life insurance policy. It pays out a death benefit if the parent passes away during the term of the policy, ensuring that the children’s financial needs are met.

The other options (A, C, and D) are either designed for different purposes, such as providing income to the family or maintaining premium payments, or are not tailored to provide direct coverage for children.

Understanding the differences between these riders is crucial when selecting the right life insurance coverage for your family’s needs.