What is the purpose of a payor benefit in a child insurance policy?

The purpose of a payor benefit in a child insurance policy is to ensure that premium payments continue if the person responsible for paying the premiums (typically the parent or guardian) becomes incapacitated or passes away. This arrangement provides financial security, allowing the policy to remain in force until the child reaches a certain age, often 25.

By having this benefit, the child is protected from losing the policy due to non-payment during a challenging time, ensuring that they will receive the intended benefits once they reach maturity. This feature is particularly valuable in helping parents secure a financial safety net for their children, demonstrating the importance of continued coverage even in unforeseen circumstances.