Life Insurances on Kids

[WinoBlues]

I know the debate about whether having insurance on kids is a financially sound idea or not. I am in the is camp. Below is a paragraph from an email. I had asked her if I could use it.
Background: I have two policies on her two other kids. (Orphans) And rewriting some old ULs on her and her husband. Her 20 year old son was killed in an auto accident.

“”No, Lee, this has been important to me since I was 14. Being 58 now, it is still important to me. And life insurance helped us get thru a very difficult year, in a financial way I never imagined. When my son died, we could not finish a sentence or a thought. Then we got sued the next year because of the accident. The $$ from the accidential death policy and the whole life policy paid our bills, when we could not function due to so much heartache. Explain this to your younger parents, as I did not know how awful life could be, but at the same time how thankful I was to have life insurance.””

“”Hi Lee,
Yes, use that paragraph however you want. It is so important for parents to understand that their mortgage goes on & all their other financial obligations. The money from insurance is not supposed to make you feel better or to plan a vacation, but rather sustain you through the absolute worst of heartbreaking experiences. I only know this after experiencing it personally, especially being self employed. I know parents who have lost their jobs, their homes, cars, etc. I have attended seminars to help with my healing and the one thing that all parents agree upon is that we all grieve differently, and you will go thru hell before you start to heal. It may take years to get to your "new normal" and only then do you understand what being a "survivor" truly means.

Thanks again Lee,
Cheryl “”


Please comment as an agent and also as a parent.
Just my 2 cents

 

[Full Throttle]

Re: Life Insurances on Kids.

You did a very good thing selling that policy! Even beyond the financial impact on the parent, protecting insurability on someone who is young is important in my opinion.

 

[Stonewall]

Re: Life Insurances on Kids.

Thanks for sharing. Powerful stuff Wino!

 

[BNTRS]

Re: Life Insurances on Kids.

My theory, there is no debate. Those who don't have kids don't see the benefit for obvious reasons.

Those who throw up an objection would like to have life insurance deep down, but often put on a face...affordability is the key motivator to no.

 

[jemelton]

Re: Life Insurances on Kids.

What companies have the best policies for kids? I know everybody has heard of "Gerber" but they don't let agents sell those plans.


I was thinking of marketing to parents and grandparents around Christmas time this year and would like a decent product to promote.

 

[jdeasy]

Re: Life Insurances on Kids.

What companies have the best policies for kids? I know everybody has heard of "Gerber" but they don't let agents sell those plans.


I was thinking of marketing to parents and grandparents around Christmas time this year and would like a decent product to promote.

RNA's Royal Prime 20 pay is a favorite of mine.

 

[WinoBlues]

Re: Life Insurances on Kids.

Cannot take the credit for the coverage. These were orphan accounts I AOR'd. years ago. I am now doing some replacements on Mom and Dad. I have paid a number of juvenile claims though.

Her story took me back to the time my oldest son spent in the Sand Box. (Iraq). I was a mess and he came back fine. About went broke.

It is more than the cost of the funeral. It is about having the time. Time to learn to breath again.

Life Insurance........It's about time!

You did a very good thing selling that policy! Even beyond the financial impact on the parent, protecting insurability on someone who is young is important in my opinion.

 

[Newby]

Re: Life Insurances on Kids.

People who argrue against having life insurance on children are VERY misguided. Of course the parents have to have coverage first. But life insurance is not all about income replacement as the Dave Ramsey's of the world would have you believe.

The 10-pay and 20-pay whole-lifes are an excellent choice and can be a gift to the child when he is a young adult. A lifetime payment policy is NEVER a gift.

 

[scagnt83]

Re: Life Insurances on Kids.

Wow, what a strong story to tell future clients.

I always stress having coverage on kids. If for nothing else, just to insure the kids future insurability.

But its very true that most parents would not be able to immediately return to work.... or if they did, their income could certainly take a hit.


Interesting product note here;
When I was at NYL I hated their "family coverage" plan that included the parents and kids all together.
(we where pushed to sell it all the time)

But it did have one nice feature... if mom gets pregnant the unborn baby is insured the moment they pop out, insurability is not an issue, any new additions where GI.

But then I start having problems with the policy again.... like how it caps the kids coverage at something like $30K...
But for the right circumstance it could be useful.

 

[Cornelius]

Re: Life Insurances on Kids.

Because of this quote "But it did have one nice feature... if mom gets pregnant the unborn baby is insured the moment they pop out, insurability is not an issue, any new additions where GI".

I was going to post a you tube of a birth but it was toooooo graphic.. " I myself didn't want to see that.. I clicked off quick..