Toddler who Died in Hot Car Had Two Life Insurance Policies

[Brian Anderson]

The Georgia dad who left his son to die in the hot car recently told his family from jail how to collect on two life insurance policies on the child, with a total death benefit of $27,000.
Whether or not they’ll be able to collect on it or not is a different story, as the policies may have restrictions due to the nature of the child’s death.
There has been no shortage of articles about this case, including many that talked about the life insurance aspect.
http://www.kabc.com/common/more.php?m=58&ts=1404500702&article=25BE628C039911E4B51EFEFDADE6840A&mode=2
Life insurance on children represents about 1% of the market. Have you ever sold a life insurance policy on a child, and if so, what were the circumstances? Do you think the family in the Georgia case will be able to collect on the two policies?

 

[bobson]

The Georgia dad who left his son to die in the hot car recently told his family from jail how to collect on two life insurance policies on the child, with a total death benefit of $27,000.
Whether or not they’ll be able to collect on it or not is a different story, as the policies may have restrictions due to the nature of the child’s death.
There has been no shortage of articles about this case, including many that talked about the life insurance aspect.
http://www.kabc.com/common/more.php?m=58&ts=1404500702&article=25BE628C039911E4B51EFEFDADE6840A&mode=2
Life insurance on children represents about 1% of the market. Have you ever sold a life insurance policy on a child, and if so, what were the circumstances? Do you think the family in the Georgia case will be able to collect on the two policies?

I have $50,000 of whole life insurance on my son. I imagine our productivity at work would take quite a hit if we lost him. We'd need at least that much to survive for a few months.

I'd have to tell my wife how to file a claim if I was unable to.

 

[LGilmore]

Usually when I place a child's policy, it also has a GIO option on it to plan for the future. Not so much a die tomorrow concept but a live a long life, have a solid base to start from.

Most people like the GIO option as it simply takes away the ability for an insurance company to say no.

As to if they can collect, up to the courts.

 

[insuranceconceptscindy]

I don't understand why people think it's wrong/stupid/morbid/etc to get a policy on a kid. Both of my kids have multiple policies- probably over $200,000 each in a combination of whole life and UL. (both my dad and I buy them when we can-you can't be over insured.)

I want to make sure that they have adequate insurance in case they can't get it later in life- there was a time where I couldn't get a dime. Also, the cash value build up will be enough so that they could get a car or pay for books at school or pay for a few meals at their weddings. I think it's smart to insure your kids.

On top of all that- it breaks my heart in a million pieces to see families have to hold garage sales and car washes to bury their kids, when you could have bought a little policy for $20 a month. It's hard to grieve when you are trying to scrape up cash like that.

Buy your damn kids and grand kids life policies. It's worth it.

 

[Jacob59]

Placed $500,000 on both my kids at age 2. Investment vehicle as well as legacy benefits.

 

[WinoBlues]

The Georgia dad who left his son to die in the hot car recently told his family from jail how to collect on two life insurance policies on the child, with a total death benefit of $27,000.
Whether or not they’ll be able to collect on it or not is a different story, as the policies may have restrictions due to the nature of the child’s death.
There has been no shortage of articles about this case, including many that talked about the life insurance aspect.
http://www.kabc.com/common/more.php?m=58&ts=1404500702&article=25BE628C039911E4B51EFEFDADE6840A&mode=2
Life insurance on children represents about 1% of the market. Have you ever sold a life insurance policy on a child, and if so, what were the circumstances? Do you think the family in the Georgia case will be able to collect on the two policies?

First, I have large policies on my three youngest.

I offer child riders on all parent policies. Yes, I have written many child policies and child riders. To not offer it I believe is a disservice to my clients.

Youngest claim I have paid was 16 days old, Less than 12 hours after writing the policy. I have converted a child policy at 5 times the original face on a comatose client and converted a male child policy to a female adult policy. I have a child rider in place now on a 21 year old that is in a vegetative state that will convert up to $100,000.00 at their age 25.

If the father is the beneficiary and is found guilty of his son's murder I do not believe he will be paid the benefits. Now will the contingent? Not sure, I have a call into the head claims person at one of my companies asking that.

 

[scagnt83]

If the father is the beneficiary and is found guilty of his son's murder I do not believe he will be paid the benefits. Now will the contingent? Not sure, I have a call into the head claims person at one of my companies asking that.

If the father is found guilty then he will not get the benefit.

Im about 95% sure that the contingent would (assuming they are not a party to the crime), as long as the policy was not purchased for the intent to defraud.

It could possibly vary company to company and state to state based on different policies and laws.

 

[VolAgent]

Nothing wrong with life insurance on children. Just make sure the parents have it first.

Unless they were accidental only, I would say the policies will pay. The question is, who will they pay to? I haven't kept up, but I believe the father has been charged with his death and I believe the mother was also charged as an accomplice? If so, I don't believe either could collect.

Even if they were accidental only, they should pay. The exclusion is for the insured committing a felony. The child didn't choose to kill himself in a hot car, someone else did that to him.

 

[somarco]

If you know anyone that had to bury their child you will know that is the most emotionally devastating thing that can happen. I have witnessed this too often and have seen the impact it has on the parents and remaining family members.

In one situation the mother was driving her son and the son's best friend to their mountain cabin. On a rainy, winding two lane road the mother lost control of her car and swerved into the path of an oncoming bus with campers returning home. The car was t-boned and both boys were killed. The mother was in ICU for almost two months plus over a year of physical rehab.

She was unable to attend her son's funeral.

The accident nearly tore the family apart. The father took off work for several months to attend to his wife.

They had a small policy on the son but they also had assets to help them through the financial loss.

Those who are critical of life insurance on a child are either misinformed or in denial.

 

[DHK]

Nothing wrong with life insurance on children. Just make sure the parents have it first.

I agree. The amount the parents should have, should be a good sized face amount, unless they are uninsurable. I add child riders to all my policies, but they usually cap out at around $25,000.

If setting up separate WL policies on children, the parents should be maximum funding their own policies first.

***

This story is more about the declining moral standards in America, than it is about the fact that there is life insurance on a child. Life insurance is good in a moral society that wouldn't seek out to kill a child to collect. Without morality, then life insurance is seen as an incentive to do harm to another.

Anybody remember Scott Peterson 10 years ago and the $250,000 insurance policy he had on his wife?