LLQP Life Insurance · Component 2.2 · 30% of the exam
A child rider typically provides:
- A small amount of term coverage on each child, often convertible to individual coverage in adulthood
- BDisability coverage for the child that pays a monthly benefit if the child cannot attend school
- CFull income-replacement coverage on each child, sized to what the child would have earned as an adult
- DCoverage for the child's education, paying tuition if the parent dies before the child finishes school
Correct answer: A) A small amount of term coverage on each child, often convertible to individual coverage in adulthood
Child riders cover final expenses and, more valuably, guarantee the child's future insurability through a conversion option. They are inexpensive because child mortality is low.
Why the other options are wrong
- BChild riders are life coverage, not disability coverage.
- CChild riders provide small amounts, not income replacement.
- DThey do not fund education.
Exam tip
Child rider: small term amount, cheap, and valuable mainly for the conversion right that guarantees the child's future insurability.
Common mistake
Undervaluing the conversion option in a child rider.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Life Insurance module. Written against the published curriculum.
More from component 2
- A client has a need lasting about twenty years and compares a ten-year and a twenty-year term policy. The main point to explain is that:
- A client exercises the conversion privilege on his term policy. The permanent premium will be based on:
- A client notices that a small policy costs proportionately more per unit of coverage than a larger one. The explanation is that:
- A client wants to pay monthly rather than annually. The agent should explain that monthly payment:
- A client asks why dividends from her participating policy are not taxed like interest from a bank. The reason is that a dividend is:
- A universal life policyholder is choosing among the investment options inside her policy. She should understand that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.