There are many arguments as to who really needs a complete life insurance package and who needs some form of coverage in the form of rider. Does you spouse really need a rider if you already have a life insurance policy? Does you child or dependent really need one too?
To answer this question correctly we must understand the basic needs life insurance coverage meets …
A life insurance policy is basically meant for breadwinners or persons whose demise will cause hardship for their survivors. Although there are other reasons why people buy life policies this is the main reason.
Some insurers have certain riders to cater for spouses and dependents. Such riders add term life coverage for such a spouse or dependent. It certainly makes more sense to buy a dedicated term life insurance for such a person if you think it's necessary. You'll almost always get a far lower rate per $ 1,000 coverage for the person in question if you get another complete term life insurance policy.
For the dependent, you really do not need any form of life insurance for a child unless you want to start a foundation in their memory or make a donation to their favorite charity if they pass on. If you're thinking in such lines then you'll serve that cause better by getting another life insurance policy for such a child or dependent instead of a rider.
We can make an exception for rare cases (like child actors) where the family fortunes will be dramatically altered if such a child passes on. Life insurance is a real necessity then. Like I explained when I talked about the main reason for a life insurance policy, such a child contributes considerably to the family's finances. Therefore the loss of that child will result in the loss of such financial contribution with the attendant consequences.
If you've decided to buy a life insurance for yourself, spouse or dependent, you'll get far better rates if you get and compare many quotes from many different insurers. This is because the difference in rates from insurers for a particular policy could range from a few hundreds to a couple of thousand dollars.
If you already have a policy, you can also reduce your current rates by getting and comparing life insurance quotes from insurers you did not get quotes from before you bought your present policy.