Universal Life for Young Child

[WinoBlues]

The parents absolutely refuse to buy additional coverage on themselves for whatever reason but want to start a program for thier kids....you gonna walk away? Or the grandparents want to start something but you know that the parents don't have enough or maybe grandma doesn't have her FE taken care of, you are going to say, "No, I won't sell the children coverage.". You are going to leave without a sale because they won't buy what you think is best for them?

Someone calls me to buy a couple child policies on their children or grandchildren, I am saying "please sign here and here. I make them a client. It is just the first policy. I do a lot of fact finding as I am inking the app.

 

[rousemark]

Someone calls me to buy a couple child policies on their children or grandchildren, I am saying "please sign here and here. I make them a client. It is just the first policy. I do a lot of fact finding as I am inking the app.

And, it may well be that because you gave them what they wanted that you will later be able to provide them with what they need.

 

[VolAgent]

Someone calls me to buy a couple child policies on their children or grandchildren, I am saying "please sign here and here. I make them a client. It is just the first policy. I do a lot of fact finding as I am inking the app.

I agree with most of Bob's first post and all of yours.

Yes, parents need the coverage much more than the children and it is generally ignorance driving it. However, trying to help them understand that right out of the door is absolutely pointless. Most will never get it, but if you sell them something today, you get many opportunities to have that conversation later from a much better perspective.

Refusing to sell a policy on the child because the parent is under-insured does nothing to help the family. Getting an agent who will help them correct that as time goes on definitely does.

 

[DHK]

I would have a problem if there was NO insurance on the parents - aside from being uninsurable - OR if they wanted a larger policy on the child that seems disproportionate to their own coverage. 50% or higher of the parent's death benefit... would make me wince a bit.

I'd have to follow my gut on that one. There are financial underwriting guidelines for a reason. Assurity would issue up to $100,000 of death benefit on a child without financial information on parents or legal guardian. If above that, then there must be one parent who has at least two times the amount of insurance in force on themselves.

However, just because it can be sold, doesn't necessarily mean that I have to be the one to sell it.