Life Insurance for a Kid

[WinoBlues]

This is one of the times I would either educate a client to do it my way or walk away. Generally I will take an order to put business on the books and build a relationship, but this is just silly. Term on a child is a complete waste baring a few unusual situations I can think of.

I got one for you. A larger term policy with waiver. For a teen contemplating entering the military. The waiver has to include act of War. If the Warrior becomes disabled while in the waiver kicks in. Many more of our Warriors come home broken than dead.

 

[VolAgent]

I got one for you. A larger term policy with waiver. For a teen contemplating entering the military. The waiver has to include act of War. If the Warrior becomes disabled while in the waiver kicks in. Many more of our Warriors come home broken than dead.

As I said, a few unusual situations. I'd have to hear the reason why from the parent(s) in question and decide if it made any sense or not.

As DHK said the other day on the other child thread, just because they can buy it doesn't mean I have to sell it.

I try to avoid talking in absolutes as rarely in life is anything black and white. We live in a world dominated by shades of gray.

 

[MichaelBurton]

Anybody know which carriers offer the largest child riders on a term policy issued on a parent?

 

[DHK]

The most I've seen is $25,000 - a rather standard amount.

 

[MichaelBurton]

The most I've seen is $25,000 - a rather standard amount.

That's what I'm seeing, too. Just thought I'd check.

I'm finding it's pretty hard to add a term rider for children without adding $100 to the cost of the policy. It's a decent value for a family with a ton of kids . . . but a very poor value for a one child family.

I don't see a way around recommending Whole Life or maybe a little UL in this case.

 

[DHK]

It's either $100 for the rider, or the cost of a separate policy. Let the client choose. $100 is only a problem in contrast with another option... or no protection at all.

WL vs Term Rider vs Nothing (as VolAgent has in his signature - you can either pay the premium or own the loss.)

 

[regularAgent]

I don't see the reason for making a Term on a Baby,
The best is a Whole Life structure for child. New York Life has one, but it has to be made well.
Otherwise is to check the parent policies and write the baby in the same amount in a WL.
One can write a WL on the parent and add the baby in the same policy for nothing (Free)