If You Had a 10 Year Old

[John Galt]

OK, so Im wanting some advice. Thats why Im not posting in the FE forum
Anyway, I have a decent little policy on my son, however I am wanting to get another policy with a larger face amount. Here is what I want to accomplish:

1. He will be able to have the option to increase coverage at a future date after he is grown. Not sure if he can do this with a 10 or 20 pay.

2. 10 pay or 20 pay?

3. I dont want him to worry about this in the future.

Basically I want to get this taken care for him now so he is never in a position where he has to worry about it.

Obviously permanent policy.

Opinions advice? I have looked at the childrens policy with MOO, but I dont think there is a limited pay offered with that.

Skipper, if you read this any advice would be appreciated. Thanks guys.

 

[WinoBlues]

OK, so Im wanting some advice. Thats why Im not posting in the FE forum
Anyway, I have a decent little policy on my son, however I am wanting to get another policy with a larger face amount. Here is what I want to accomplish:

1. He will be able to have the option to increase coverage at a future date after he is grown. Not sure if he can do this with a 10 or 20 pay.

2. 10 pay or 20 pay?

3. I dont want him to worry about this in the future.

Basically I want to get this taken care for him now so he is never in a position where he has to worry about it.

Obviously permanent policy.

Opinions advice? I have looked at the childrens policy with MOO, but I dont think there is a limited pay offered with that.

Skipper, if you read this any advice would be appreciated. Thanks guys.

As you evaluate your options here is something to consider. Look at the total face with the GIOs and consider a Gul for the full face on a 20 pay. Cash value of a WL may be valuable to him in 20 years but a larger face amount may be more valuable to a 30 year old dad. Just a thought.

He is your son today, he may be somebody's husband or dad then.

 

[pfg1]

I would do a max funded whole life, with div paying mutual with GIO and WOP riders. Already did on my kids. Amazing what a small amount will do for them by the time they are in their 30's. Personally, I wouldn't limit it to a 10 or 20 pay. 10 or 20yrs down the road, it will be very efficient and a great place to park cash. my .02

 

[Deepsea]

10 pay
Forget the waiver of premium

 

[Newby]

I would do a max funded whole life, with div paying mutual with GIO and WOP riders. Already did on my kids. Amazing what a small amount will do for them by the time they are in their 30's. Personally, I wouldn't limit it to a 10 or 20 pay. 10 or 20yrs down the road, it will be very efficient and a great place to park cash. my .02

I agree with this. I usually sell 10 or 20-pay to clients for kids because they don't understand insurance and you have to keep it simple for them. But with a dad that understands life insurance, the life pay is better and they can go RPU as an option in 10 or 20 years but gives them more options to keep the payments going if they want to.

 

[scagnt83]

I do have a 10 year old and I have IUL on her along with a WL. They both have GIO Riders on them, and the IULs DB leaves room to add more premium.

But I really like MM 10 or 20 pay for kid policies. The COI is so low for kids it makes a whole lot of sense to pay it off before they reach age 30. Their GIO allows for a $125k increase.

For a 10 year old $100/m would give you a $111k DB on the 20 Pay, and a $78k DB on the 10 Pay.
The 10 pay is cheaper in the short run. It is $12k in total premiums for $78k in DB. The 20 pay is $24k in total premiums for a $111k DB.
But in the long run, at age 50, the 10 pay will have a 150k DB, vs a $290k DB with the 20 pay.

The 20 pay would be the best option imo. Go for the larger DB.

 

[Deepsea]

I would go with the 10 pay.
Pay it annually not monthly as the financing charge for monthly---makes no sense.

10 years and be done with it. Greater chance you complete it.

Personally I always skip waiver of premium as I personally don't think it's worth the expense.

 

[Newby]

I would go with the 10 pay. Pay it annually not monthly as the financing charge for monthly---makes no sense. 10 years and be done with it. Greater chance you complete it. Personally I always skip waiver of premium as I personally don't think it's worth the expense.

Not if you worked in Kentucky. I'll bet 100% of the policies with waiver of premium on them I have ever run into are people on disability.

Whodda thunk?

 

[TwiLight]

OK, so Im wanting some advice. Thats why Im not posting in the FE forum
Anyway, I have a decent little policy on my son, however I am wanting to get another policy with a larger face amount. Here is what I want to accomplish:

1. He will be able to have the option to increase coverage at a future date after he is grown. Not sure if he can do this with a 10 or 20 pay.

2. 10 pay or 20 pay?

3. I dont want him to worry about this in the future.

Basically I want to get this taken care for him now so he is never in a position where he has to worry about it.

Obviously permanent policy.

Opinions advice? I have looked at the childrens policy with MOO, but I dont think there is a limited pay offered with that.

Skipper, if you read this any advice would be appreciated. Thanks guys.

I look at it this way, I will tell you what I did with me and my family.

I have always acknowledged that the best contributor of wealth is the time value of money and Children of middle class families can increase their lot in life if their parents did a little planning when they were children.

With that being said all my family's children have a max funded IUL (Option B Increasing with the intent to change to Option A-Level after 20 years) for $100k. They will be in their mid to late 20's when paid into for 20 years and will have plenty of cash accumulated in them to either take over payments or let it sit with no additional premium. GIO riders are also an added bonus for the child and would recommend it.

My choice would be with North American as the carrier. That is what I have done anyway.

Skipper

 

[John Galt]

I look at it this way, I will tell you what I did with me and my family.

I have always acknowledged that the best contributor of wealth is the time value of money and Children of middle class families can increase their lot in life if their parents did a little planning when they were children.

With that being said all my family's children have a max funded IUL (Option B Increasing with the intent to change to Option A-Level after 20 years) for $100k. They will be in their mid to late 20's when paid into for 20 years and will have plenty of cash accumulated in them to either take over payments or let it sit with no additional premium. GIO riders are also an added bonus for the child and would recommend it.

My choice would be with North American as the carrier. That is what I have done anyway.

Skipper

Skipper

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