Final answer:
A child rider is a type of life insurance product that allows children to be covered under their parents' policy. It offers term life coverage for children until they reach adulthood, usually without individual underwriting. Some child riders can later be converted into permanent policies for the child.
Step-by-step explanation:
The type of life insurance product that covers children under their parents' policy is typically referred to as a child rider or juvenile insurance rider. This rider is an add-on to a parent's life insurance policy that provides a certain amount of coverage for the insured's children. It is a convenient and cost-effective way to provide a measure of financial protection for children without having to purchase a separate policy for each child. The coverage is usually offered at a nominal cost and includes children until they reach a certain age, often their early adulthood.
Child riders are typically term life insurance extensions, which means they provide coverage for a set period. One of the major benefits of this type of insurance product is that it generally doesn't require individual underwriting for each child. Moreover, in some cases, it can be converted into a permanent life insurance policy for the child when they reach the majority age without requiring proof of insurability.
These riders can be especially important for parents who are looking to provide a safety net in the unfortunate event of a child's death, as the financial benefits can help cover final expenses and provide support during a difficult time.