Stand Alone Child Life Policies

[bluezebra48]

Hmmm... He must be using a bad quoter. No company will place a 2 year old for 500k

 

[SmartWorker]

I've been told to make sure the parents are insured for 2x the amount for the child as a rule of thumb.

 

[Farmgirl]

Moo is cheaper than bankers

 

[pfg1]

Hmmm... He must be using a bad quoter. No company will place a 2 year old for 500k

That's just not true. I've not personally done one that high, but a friend of mine has done them much higher than that.

 

[scagnt83]

Imo Mass and Guardian are the best choices for kids.

A $50k Guardian 20pay WL would be $26/m. That would include a Guaranteed Insurability Rider that would guarantee them the chance to buy a $50k policy up to 8 times before they hit age 45.

A $50k Mass 20pay would be $45/m. But it would include a $100k Guaranteed Insurability Rider.

 

[rousemark]

That's just not true. I've not personally done one that high, but a friend of mine has done them much higher than that.

But not on the average 2 year old. In the majority of cases, with most companies the parents will not have the income to justify their having the coverage necessary to be able to insure their child at that amount.

 

[scagnt83]

Insurability is the ONLY real reason to buy coverage on a 2 year old.

Genworth Life, 20 year term, $500,000, $245 per year.

Another perfect example of why people should only take advice from actual licensed insurance agents.

1. No carrier will issue $500k on a child unless the parents have $3mil+ each. It is likely they would actually underwrite the amount based on the parents income, and not the amount in force on the parents. But each carrier is different.
(That is called financial underwriting for the non-insurance agents out there)

The one exception to this would be if they are overfunding the policy to try and save for college.

2. Genworth is the only carrier on the market who will offer Term on a child. Maybe there is a reason for that??... actual licensed agents know why.

3. Genworth has some of the worst conversion options... excuse me, option (as in singular) out there.

 

[HoosierLife]

Insurability is secondary when I am talking to clients about life insurance on kids. It has also be a non issue on all the child claims I have done. ---------- Life Ready UL. A Current Assumption UL. Just did one, The guy was one notch above decline across the board. It sucks. ---------- What is her budget? Is she covered? If not a small policy on her with a child rider would be cheap. MoO $20,000 = $7.00mo Child WL With 4 purches options built in. Or say 25yo female $100,000 30yr ROP(convertable) w/ABR and $20,000 all current and future (after 15 days) children to age 25 Then convertable to $100,000.00 = $21.38mo with a RdPdUp policy at age 55 of $18,600.00 Same plan with straight term is about $5. less mo. ---------- Also if the 2 yr olds mother is buying a half million $ policy there had better be a ton on her life and a reason. Underwritting is going be to asking why.

MoO will do $20K for $7/mo? That's cheap. The 4 purchase options are for the original face?

Do they have a 10/20 pay option?

Man that's cheap!

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What's the max face for MoO?

 

[scagnt83]

MoO will do $20K for $7/mo? That's cheap. The 4 purchase options are for the original face?

Do they have a 10/20 pay option?

Man that's cheap!

You can get a $25k 20pay from Guardian for $13/m. Much better WL policy than MoO in general. Higher dividends/cash value, double the purchase options (8 vs. 4), and double the financial rating (A+ vs. AA+) (I know that is not really double... but it just went along with the last statement, lol)

 

[HoosierLife]

And correct me if I'm wrong, but from a financial standpoint on a child, it would always make better sense to use a limited pay option?

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You can get a $25k 20pay from Guardian for $13/m. Much better WL policy than MoO in general. Higher dividends/cash value, double the purchase options (8 vs. 4), and double the financial rating (A+ vs. AA+) (I know that is not really double... but it just went along with the last statement, lol)

Well that definitely seems like the best deal. Is that the price for a male age 0?