What kind of coverage does a children's rider typically provide?

A children's rider is an insurance provision that adds coverage for the lives of a policyholder's children to an existing life insurance policy, often a permanent life insurance policy. The correct answer highlights that this coverage is typically permanent and includes a feature that allows the coverage to be converted to a permanent policy for the child at a specific age without requiring proof of insurability.

This is beneficial as it ensures that children have life insurance that remains in place as they grow and can transition into their own permanent policy when they reach that designated age. This provision offers a safety net for families, securing future insurability for their children.

The other options focus on the limitations of coverage types. For instance, stating that it only offers term or only permanent coverage does not accurately reflect the flexibility typically inherent in a children's rider. Thus, the option that highlights the permanence of the coverage and the conversion feature is the most accurate and representative of a children's rider's function.