What is true regarding a children’s rider added to a permanent life insurance policy?

The correct answer indicates that a children's rider added to a permanent life insurance policy typically provides term coverage for the insured's children that is convertible to permanent insurance before reaching a specified age, often set at 18 or 21 years. This means that while the rider initially offers temporary coverage, it allows for the children to be covered under a permanent policy without needing to provide evidence of insurability once they reach that age. This feature is advantageous as it provides flexibility and security for the family's financial planning.

In contrast, the coverage under this rider does not limit itself exclusively to natural children, so the claim stating it only covers the insured's natural children would be inaccurate. Additionally, children covered under the rider are generally not required to prove insurability for the conversion to permanent insurance, which makes the rider more accessible and beneficial. Lastly, the rider itself does not provide permanent insurance outright; instead, it provides term coverage that can transition to permanent insurance, hence clarifying why the other options are not valid in this context.