- 11,278
Taylor Swift is not a minor.
How much life insurance should both parents have if they want to buy life insurance for their child?
- Thread starter Noveau
- Start date
- Staff
- #12
when she was a minor........
How old was Taylor Swift first single?
16 years old
When she released her first album Oct. 24, 2006, Taylor Swift was 16 years old. The album's first single, "Tim McGraw," was released June 19 of that year.
- 11,278
Justify amount using a cover letter.
But those are exceptional circumstances.
But those are exceptional circumstances.
The thinking behind is that if both parents have no coverage and they buy 500K for their child, it is presumed they are thinking of doing the unthinkable. Most fully underwritten places will question anything more than 250K on a child.
- Staff
- #15
Estate taxes. If you know you are going to pass on 50 million to each grandchild, you might as well set up some inside of a trust owned policy. You will need much more than 500K death benefit. Another reason would be again exceptional cases but if parents give up their careers so that their child can train for the olympics, you would want to insure childs future earnings to compensate parents.
- 16,887
Shouldn’t matter but it does. If I become a responsible person AFTER I have kids and I have health issues where I can’t buy a large term policy on myself I might still see the advantage of protecting the insurability of my kids.
- 4,576
that is not a good planning rule, that is more of carrier rules as to how much they require before they insure a child.
in my opinion, until both parents are properly covered so debts/income are properly protected between personally owned life/group life/SS Survivors, the children should be covered by a term rider covering all kids on 1 of the parents term policies. once parents have themselves covered for death, disability, have adequate emergency funds & are already saving for retirement, then I think it is ok to look at personal life policies on the kids instead of riders on parents policies. Most riders allow the child to convert the rider to 5-10x the rider amount to permanent coverage when kids are age 20-25.
You dont want to be the agent delivering a $200,000 death claim check when dad making $80k dies but the 2 kids had their own policies that could have paid for another $500k on dad
- 4,576
you seemed to know that info a little too quick. As a Swifties, what is your favorite song of hers all-time........LOL
- 4,576
Agree. Plus, with where most underwriting is going these days & the genetic testing, it is a fair assumptions that declined parents lack of insurability will affect the insurability/rating of their offspring as more is known about inherited conditions, etc.
To be clear on this thread, most carriers require the 2x amount on parents if they are insurable parents, but they dont require the insurance be with the same carrier or a specific type. Personally owned, Group employer life & even Social Security Survivors should be able to be counted.
I have had some debates with underwriters over the years that didnt want to count SS survivors until I showed them SS survivors is actually more solid of life insurance as it cant lapse for non-payment & provides a check for spouse until youngest child age 16 & checks for children until they are age 18. Spouse carrying for child 16 or younger & each child 18 or younger collect 75% of the workers benefit amount.
In some cases, a household max may be $4k per month could be paid for 15-20 years, essentially a government $800-$900k term life policy. (granted, this assumes the person has met the # of quarters needed to be eligible). Last I saw, was average survivors benefit was around $3,100
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