Life Insurance for Teenagers - An Open Question for Agents

[marindependent]

Recently there was a different post on here from a consumer. I wanted to answer this consumer's post with a Why? But since this was a consumer, I didn't want to come across as mean.

But I will ask this to the forum to Insurance Agents:

Why does a teenager need life insurance?

I'm not talking about Doogie Howser or some other odd situation. But a regular average American - Why exactly does a Teenager need a life insurance policy?

 

[STIBROKER]

[QUOTE="marindependent, post: 1364723, member: 32246"
Why does a teenager need life insurance?[/QUOTE]

To lock in Insurability.......

 

[WinoBlues]

Recently there was a different post on here from a consumer. I wanted to answer this consumer's post with a Why? But since this was a consumer, I didn't want to come across as mean.

But I will ask this to the forum to Insurance Agents:

Why does a teenager need life insurance?

I'm not talking about Doogie Howser or some other odd situation. But a regular average American - Why exactly does a Teenager need a life insurance policy?

I give it a try.

Need - Why does anyone need life insurance. Burial to start. $25,000 - $50,000 will usually cover final expense if one of your children dies. Could be to cover Student loans. So you really need to define 'need' and that definition is going to change with every prospect.

Want - Now we are talking. Why does the parent or grandparent want a policy on a child/teenager? I can give you some reasons people have bought from me. Final expenses. They are Black males that live in an area where they die more often, Because the owner/payor wants to lock in a child rate forever, Their child is going into the military and they know that if their son or daughter is severely injured it can become very difficult to insure them later and waiver of premium will wave the premiums. They are buying future insurability. Those are just a few.

Now, why would an agent chase $20-$30mo premiums? They add up for one. Most importantly for me is I become the family agent. Or at least one of them, in the beginning. I always want the whole family.

 

[WinoBlues]

PS ...

I am a Life Insurance Agent. I need to get paid.
I would rather have a prospect that - Does not need it, but wants it vs one that needs it, but does not want it.

 

[fed up]

I'd rather have a client that doesn't need it but has it than a prospect that needs or wants it and can't get it

 

[rousemark]

Recently there was a different post on here from a consumer. I wanted to answer this consumer's post with a Why? But since this was a consumer, I didn't want to come across as mean.

But I will ask this to the forum to Insurance Agents:

Why does a teenager need life insurance?

I'm not talking about Doogie Howser or some other odd situation. But a regular average American - Why exactly does a Teenager need a life insurance policy?

If you are on the hook as the guarantor of their student loans, co signed for them a car, etc. you would not be asking that question..

 

[scagnt83]

Above and beyond final expenses of $10k-$50k (depending on preferences) which many families do not have just sitting around...

Are you a parent?

If so, how would losing your child affect your life? Your business? Your spouses work/income? Would it be a healthy thing to have the option for one or both of you, if needed, to take as much time as you need for the recovery process?

Yes, some people dive back into their work. Sometimes that is healthy and sometimes not. Regardless, would it be healthy to have that option of recovery time available if one of you need it?

- Lock-in insurance and future insurability (coverage increases) regardless of future health.

- Cover debt a parent/grandparent co-signed on, such as college loans.

- Gift a fully paid-up policy (such as a 20 pay) to a child or grandchild upon graduation or marriage or having a kid. Thus eliminating a future ongoing expense, and gifting a policy with CV they could utilize as an emergency fund.

- Some parents/grandparents utilize WL/IUL/VUL to help save for college. Often the policy is passed on to the child after college. Then they have the option to pay back loans if desired.

$100k-$200k on a child is not unreasonable at all just to cover final expenses and time off for parents.

 

[DHK]

https://www.davidkinderfinancial.co...-children-isnt-about-the-money-its-about-time

 

[Robert Barney]

[QUOTE="marindependent, post: 1364723, member: 32246"
Why does a teenager need life insurance?

To lock in Insurability.......[/QUOTE]

Exactly.

And you can get 40 year term, and CHEAP. An 18 year old male can get $500,000 of 40 year term for 42.31 per month. I remember when you'd pay more than that for a guaranteed insurability rider, with no protection, just the right to buy some insurance later.

As a parent of such a person, I would buy the policy, pay the premiums, and turn it over to them after they get married, with the condition their spouse got insured as well.

 

[Life Hawk]

Cause they die too... I like riders that will convert... 2 sales in one.