Life Insurance for a Kid

[MichaelBurton]

Have a client committed to buying an individual policy on his little girl's. The only option I'm aware of that is term insurance is Cincinatti Life. Any other options of which you guys are aware? Doesn't have to be term.

Last time I looked ING/Voya would offer a select standard rate on ROP term for a kid. Obviously that is gone, but maybe there is something similar.

I'm also looking at traditional permanent policy options.

Open to all ideas. Thanks in advance!

 

[rousemark]

Have a client committed to buying an individual policy on his little girl's. The only option I'm aware of that is term insurance is Cincinatti Life. Any other options of which you guys are aware? Doesn't have to be term.

Last time I looked ING/Voya would offer a select standard rate on ROP term for a kid. Obviously that is gone, but maybe there is something similar.

I'm also looking at traditional permanent policy options.

Open to all ideas. Thanks in advance!

Why would you be considering term on a child? People normally want to start a permanent plan for their children and usually prefer something that Elizabeth be paid up at some point in time. This can be accomplished with any Whole Life plan.

 

[DHK]

I'd be looking at the GIO riders/options available. GIO = guaranteed insurance option to buy additional coverage without submitting evidence of insurability.

Last I checked, I think MassMutual has the best whole life policy for that.

 

[MichaelBurton]

Why would you be considering term on a child? People normally want to start a permanent plan for their children and usually prefer something that Elizabeth be paid up at some point in time. This can be accomplished with any Whole Life plan.

Cash flow is the main reason to consider term. Plus I just want to show the client the options.

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I'd be looking at the GIO riders/options available. GIO = guaranteed insurance option to buy additional coverage without submitting evidence of insurability.

Last I checked, I think MassMutual has the best whole life policy for that.

Thanks for the reply, DHK!

Best pricing for GIO or best options (e.g. amount you can buy), in your recollection? Or both.

I noted that an Ohio National illustration I ran would only allow $100K of GIO on $100K of base policy.

 

[DHK]

Best options. MassMutual allows for multiple ages to buy up to an additional $125k(?) if I remember correctly. So you could buy an additional $625k(?) total over the years without evidence of insurability though age 40?

I'm sketchy on the details, but that's the general picture.

 

[MichaelBurton]

Best options. MassMutual allows for multiple ages to buy up to an additional $125k(?) if I remember correctly. So you could buy an additional $625k(?) total over the years without evidence of insurability though age 40?

I'm sketchy on the details, but that's the general picture.

Will look into it. Thanks for the heads up!

 

[LGilmore]

What face amount is he looking for?

 

[pfg1]

I would do permanent WL if it was me. Term is a waste of premium dollars, imo. A small perm policy with GIO is a great thing.
Most all mutuals offer GIO with many options to purchase. Many have 6-8. Personally if I do a kid policy, I usually look at about $50k in GIO. There is a cost for it, so keep that in mind. ON has nice products, as does Mass, Penn, and many others.

 

[MichaelBurton]

What face amount is he looking for?

I think it'll be $100K give or take $50K when all is said and done.

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I would do permanent WL if it was me. Term is a waste of premium dollars, imo. A small perm policy with GIO is a great thing.
Most all mutuals offer GIO with many options to purchase. Many have 6-8. Personally if I do a kid policy, I usually look at about $50k in GIO. There is a cost for it, so keep that in mind. ON has nice products, as does Mass, Penn, and many others.

I am starting to agree after looking at it. Either you just add a term rider and accept a smaller DB. Or you do WL. It's only 3X the cost of term.

 

[VolAgent]

I think it'll be $100K give or take $50K when all is said and done.

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I am starting to agree after looking at it. Either you just add a term rider and accept a smaller DB. Or you do WL. It's only 3X the cost of term.

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.