Newborn Policy?

[HoosierLife]

My wife is expecting our first on 15 June. What kind of policy would you recommend for a newborn?

Just looking for $25,000-$50,000. I was thinking of just getting a 10 or 20 pay. But I am open to suggestions.

But in a couple years we will be in the position to start saving for college. So I might want to use a type of policy that I can over fund.

So what are my best options?

 

[Lewis_FL]

Get a little IUL with a guaranteed insurability rider on it so you can increase the face amount later on. You can't get enough $ in a kiddie policy for college funding; better option is on mom or dad.

 

[scagnt83]

My wife is expecting our first on 15 June. What kind of policy would you recommend for a newborn?

Just looking for $25,000-$50,000. I was thinking of just getting a 10 or 20 pay. But I am open to suggestions.

But in a couple years we will be in the position to start saving for college. So I might want to use a type of policy that I can over fund.

So what are my best options?

You really need to narrow down what you want to accomplish.

Are you wanting to actually have an amount that will pay for all or a significant portion of college? If so, are you able to contribute over $2k per year to this? Because that is the range you need to be in to have any significant savings for college costs in 19 years.

I would second the IUL option. But I disagree that you cant save for college with a child policy. If the parents have $1m or over each in DB, and they make over $100k per year, you can get a large child policy through with some carriers based on loss of earnings if the child dies and parents are too emotionally distraught to work.

So if you fit the above scenario look at a $300kish DB IUL on the kid with a premium around $2k-$3k.

If you dont, then I would suggest a small 10pay or 20pay on the kid. And a large IUL on your or your wife.

IUL carriers to look at are MNL/NA, LFG, Axa
10 or 20 pay look at Guardian or Mass Mutual.

 

[HoosierLife]

Get a little IUL with a guaranteed insurability rider on it so you can increase the face amount later on. You can't get enough $ in a kiddie policy for college funding; better option is on mom or dad.

Problem is dad is going to get rated table two at best and mom had cancer four years ago, so hopefully if the baby is healthy, we are going to borrow his life.

 

[WinoBlues]

A different answer. In addition to the individual plan I would suggest adding a child rider to your policies on the 15th day. Inexpensive coverage, future children automatically covered at day 15 regardless of health, many convertible to 5 time face at age 25.

No CV but inexpensive life insurance. Unfortunately children can develop issues early in life that could make them all but uninsurable.

 

[unic.consulting]

My wife is expecting our first on 15 June. What kind of policy would you recommend for a newborn?

Just looking for $25,000-$50,000. I was thinking of just getting a 10 or 20 pay. But I am open to suggestions.

But in a couple years we will be in the position to start saving for college. So I might want to use a type of policy that I can over fund.

So what are my best options?

First of all, congratulations.

I had been looking up some information about this a couple months back for my daughter who's now 2. I was actually able to get a standard rate even though I was warned I'd probably be a straight decline for most companies. You might be surprised at what you'll qualify for.

 

[HoosierLife]

I had Pinney run them illustration for Metlife. Gave him $50 a month to work with and they came back with $113,000 life pay at that premium.

RNAs essential life was less expensive than that. I can get hundred and $50,000 with them at that price point.

What's the benefit was going with Metlife? I assume there are other whole life carriers that would be better?

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^^^ Siri at work.

 

[scagnt83]

What's the benefit was going with Metlife? I assume there are other whole life carriers that would be better?

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The benefit of Met is that they pay Pinney a lot more than Guardian or Mass.

As I mentioned before... Guardian and Mass have the best WL policies on the market hands down. But most IMOs do not offer them or push them because they pay very little overrides.

Also the Met policy will build a higher CV & DB most likely vs. the RNA policy... but Guardian or Mass will grow more than Met...

 

[HoosierLife]

The benefit of Met is that they pay Pinney a lot more than Guardian or Mass. As I mentioned before... Guardian and Mass have the best WL policies on the market hands down. But most IMOs do not offer them or push them because they pay very little overrides. Also the Met policy will build a higher CV & DB most likely vs. the RNA policy... but Guardian or Mass will grow more than Met...

Well who can run an illustration for me for a newborn. Say a $50K 20pay for starters.

 

[scagnt83]

Well who can run an illustration for me for a newborn. Say a $50K 20pay for starters.

$50k 20pay:
Guardian..... $42/m w/ $50k GIO Rider
Mass........... $44/m w/ $100k GIO Rider

Guardian age 18..... $76,500 DB, $9,197 CV
Mass age 18........... $64,581 DB, $6,997 CV

Keep in mind that neither of these are overfunded. But there is not a whole lot of room to overfund a 20pay like there is a normal WL because a 20pay is partially overfunded to begin with. Both are at the max GIO Rider.

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A Guardian P65 (paid up at age 65):
$50/m= $90k DB , $90k GIO

Age 18= $116,000 DB , $9,000 CV