A Question About Juvenile U/w Class

[dlvhi]

A question about Juvenile u/w class

I have a technical question about juvenile u/w class that I hope someone can help me with.

When illustrating IUL for children, some carriers allow you to use a juvenile class or their best rating. Their illustration then indicates that to keep that rating there will have to be additional u/w at 18 years of age or so.

One or two other carriers I have seen don't let you use any class other than standard, but the illustration doesn't say anything about later underwriting.

It would seem to me that the juvenile class is the more risky of the two options - if the u/w at 18 doesn't go well you could end up with expensive COI.

If you start with the standard, apparently at least you get to keep it, and if they are still healthy at 18, you could go for a new policy at the best rates.

I would appreciate any insight that you might be able to give me on this issue.

Thanks

 

[atlantainsguy]

Dlvhi, you've pretty much nailed it. Juveniles initially go Standard with all carriers I'm aware of. Then, you can always put them through U/W at 18 for "top preferred", unless of course they started using tobacco in the meantime. Initial contract will make no mention of doing this at 18. That's up to you at the time it seems. Good question and nice observation!

atlantainsguy

 

[dgoldenz]

Genworth offers the Preferred Plus risk class for minors on their no-lapse UL product.