What are the reasons for life insurance on children?

agent007 · 10-17-2006, 02:13 PM

When I was a junior in high school I lost my 17yr old brother, the following yr I lost my 16yr old brother. We had no money growing up and none what so ever to spend on life ins for us kids. My mom was a single parent trying to raise up as best she could. Why is childrens ins sold............to help the burden of funeral cost. It is so cheap that my mom did not know what it would have cost her to get us covered. Education is key,most ppl may think it cost an arm and a leg to cover children when in fact it is so inexpensive.
No parent should ever bury their child,but it does happen. There is still a cost to bury children.

James · 10-17-2006, 02:20 PM

Originally Posted by agent007

When I was a junior in high school I lost my 17yr old brother, the following yr I lost my 16yr old brother. We had no money growing up and none what so ever to spend on life ins for us kids. My mom was a single parent trying to raise up as best she could. Why is childrens ins sold............to help the burden of funeral cost. It is so cheap that my mom did not know what it would have cost her to get us covered. Education is key,most ppl may think it cost an arm and a leg to cover children when in fact it is so inexpensive.
No parent should ever bury their child,but it does happen. There is still a cost to bury children.

As far as I remember there has been the Gerber Life Insurance, with just one dollar starts your child life insurance. Cost is around 20-50 dollars yearly which is basically what I offer (not Gerber but another carrier), so I'm not sure if one can claim ignorance, most I assume get these in the mail everytime a child is born. Its just a matter of looking at the junk mail. No I think it has more to do with denial of people, "It can't happen to me", as you and your family found it, it can and does happen. I lost my Niece some years ago, she was around 7 years old, its a hard thing to watch someone close to loose a child I couldn't imagine the pain of going through it.

MIBizInsurance · 10-18-2006, 03:19 PM

What companies do you folks write child insurance through?

Is there term insurance for children?

I have 25k whole life policies on my kids but would like to know what other options there are.

*STIBROKER@AUSTIN.RR.COM* · 10-18-2006, 03:43 PM

Guardian....and no wl is your best bet ....and its cheap.....

MIBizInsurance · 10-18-2006, 04:52 PM

Is there an online quote generator for childrens insurance that I can access?

Ask as I pay about $130 a year for my 7 year old daughter and about the same for 9 old Son.

Thanks for the replies.

VIC · 10-19-2006, 10:33 AM

ONLINE---www.SASID.com...
Face to face--sell Globe, the put it in the computer

*STIBROKER@AUSTIN.RR.COM* · 10-19-2006, 10:51 AM

Originally Posted by VIC

ONLINE---www.SASID.com...
Face to face--sell Globe, the put it in the computer

thats a non participating WL....would not recommend it.....

*STIBROKER@AUSTIN.RR.COM* · 10-26-2006, 06:09 PM

Not on kids ....but funny.....

http://www.youtube.com/watch?v=IHnR63P4Cv8

marcircus · 12-08-2006, 09:13 PM

The reason I purchased WL on my children, before they were even one year old was to provide them with a financial "ace in the hole" in terms of the accumulated cash value if they ever needed it.

NHB_MMA · 12-11-2006, 01:52 AM

Very good post marcircus. Relating it to the other thread, would you have ever considered a VUL for a higher return and why or why not?

marcircus · 12-11-2006, 09:13 PM

NHB_MMA

Thanks for saying this is a good post.

I reponded to your post on VUL for children on the thread you started.

I should add that I am now in fact considering a VUL for my children. The policies I bought them were 10 pay life (they are twins) and I just paid them up.

Take care

maxreferrals · 01-09-2007, 04:58 PM

I'll take the position (and return flames) that LI is income replacement.

As such, there's no reason to hold LI on a child. There's no reason to even sell it to a parent.

Unless it is for final expenses or thereby financially would create an undue financial strain on the family.

marcircus · 01-09-2007, 08:12 PM

I'll take the position (and return flames) that LI is income replacement

No flames from me, don't even care to speak to you if you have that preconcieved notion about how the conversation will go.

James · 01-10-2007, 02:32 PM

Originally Posted by maxreferrals

I'll take the position (and return flames) that LI is income replacement.

As such, there's no reason to hold LI on a child. There's no reason to even sell it to a parent.

Unless it is for final expenses or thereby financially would create an undue financial strain on the family.

Dang, and all this time I though LI was about financial interest?

L5tc · 01-12-2007, 09:36 AM

I started late and my daughters 10 which killed off compounded from 1. I would, had I the knowledge, write a WL on her. the cash value doesn't show on the FASFA form(529 money does!) - she would cash to access for a down payment, have collateral via the policy and cash to pull out when she's retired and she's always insured! It IS and insurance policy after all lets not forget that.

Term for burial? that's a different issue and one that should be addressed but a lot more gruesome than what I'm talking about

healthagent · 01-12-2007, 09:47 AM

My wife and I are putting $200 a month in for our son and we're not saying a damned thing about it. If he decides to go to college (which I'll be against since all my friends with degrees are getting their asses handed to them) then it's 100% of college paid for. Hopefully he chooses not to go to college and start his own business. Then he gets a nice surprise when I lay about $150,000 in his lap.

L5tc · 01-12-2007, 07:38 PM

Cash value policy pulling out some money tax free and it doesn't have to be school related. Not for nothing but I DO have a 529 plan for my daughter that's managed by Vanguard for NYS. It has performed so horribly I cannot tell you. They restrict the allocations to that dopey age based formula which doesn't work because like indexing - it depends when you stop and start as much as the bull about how great indexing is.

maryjd123 · 01-13-2007, 01:36 AM

I forgot i was signed up with this company --- Armed Forces Benefits Association -- www.afba.com

This is not just for the military

Its for regular folks too

You guys are talking about insuring kids -- i have a 50k policy on all of mine -- i have 4 kids --- 12 dollars a month for each -- they are teenagers -- they will have this for this rest of their life.. and I am so glad i did this for my oldest daughter -- she has a colonoscopy scheduled for the 23rd of january -- the doc said they will most probably be diagnosing crohns disease... at least now she will have insurance -- because she wont be able to get it later..

This is why people should get their kids insurance when they are young -- you never know what will happen in the future.

Mary
P.s.
If anyone needs to get their kids insured let me know -

Btw this is not term ins.. its wl

And -- thru their allowance -- they are paying their own premiums.

salpro22 · 01-13-2007, 02:02 AM

Originally Posted by maryjd123

I forgot i was signed up with this company --- Armed Forces Benefits Association -- www.afba.com

This is not just for the military

Its for regular folks too

You guys are talking about insuring kids -- i have a 50k policy on all of mine -- i have 4 kids --- 12 dollars a month for each -- they are teenagers -- they will have this for this rest of their life.. and I am so glad i did this for my oldest daughter -- she has a colonoscopy scheduled for the 23rd of january -- the doc said they will most probably be diagnosing crohns disease... at least now she will have insurance -- because she wont be able to get it later..

This is why people should get their kids insurance when they are young -- you never know what will happen in the future.

Mary
P.s.
If anyone needs to get their kids insured let me know -

Btw this is not term ins.. its wl

And -- thru their allowance -- they are paying their own premiums.

Interesting website. I had the pleasure of serving under the new president (General Eberhart) and must say he is one of the nicest guys you will meet at his level. Here is the part of the website that intrigued me.

Life Insurance Programs Â– 1-800-776-2322
Group Insurance
Available to military personnel; DoD, Federal Government, and Department of Homeland Security employees; Contractors in support of the above; State and local government employees (to include police officers, firefighters, and other first responders) and families of the above. Underwritten by 5Star Life Insurance Company (except in NY.)

Individual Insurance
Available to all individuals. Underwritten by 5Star Life Insurance Company

Charles C. Blanton AFBA Family Survivor College Scholarship Â– 1-800-776-2322

For surviving families of members killed in combat or acts of terrorism. Click here for more details.

AFBA Emergency Death Benefit Â– 1-800-776-2322
Up to $15,000 mailed to the insured memberÂ’s beneficiary within 24 hours after receiving notice of a memberÂ’s death. Certain conditions and limitations apply.

Annual Financial Planning Guide Â– 1-800-776-2322
Provides information on retirement, health and survivor benefits, social security, and personal financial and estate planning.

Worldwide Bank Products and Services Â– 1-800-776-2265
Low interest rate credit cards, home mortgages, and more.
Offered through 5Star Bank

Identity Theft Protection Program Â– 1-800-776-2265
Offered through 5Star Bank

AFBA 5Star Mutual Funds Â– 1-800-243-9865
Choice of 7 different no-load mutual funds

Long Term Care Â– 1-800-776-2264
Offered through John Hancock

Short Term Medical Â– 1-800-800-1212
Offered through Assurant Health

Student Select Medical Â– 1-800-800-1212
Offered through Assurant Health

Automobile Insurance Â– 1-800-847-2886
Offered through GMAC

Automobile Financing Â– 1-800-247-5626
Offered through Pentagon Federal Credit Union

marcircus · 01-13-2007, 09:24 AM

Per maryjd123:

you guys are talking about insuring kids -- i have a 50k policy on all of mine -- i have 4 kids --- 12 dollars a month for each -- they are teenagers -- they will have this for this rest of their life.. and I am so glad i did this for my oldest daughter -- she has a colonoscopy scheduled for the 23rd of january -- the doc said they will most probably be diagnosing crohns disease... at least now she will have insurance -- because she wont be able to get it later..

This is why people should get their kids insurance when they are young -- you never know what will happen in the future.

Mary
P.s.
if anyone needs to get their kids insured let me know -

btw this is not term ins.. its wl

Any chance you could provide a link to the WL page on their website?

I guarantee you I rummaged around in there pretty thoroughly and could not find it. $12/mo for $50,000 WL DB is too good to be true and I sure as heck would hop on that bandwagon if you could get me a link to the page. Thanks.

Are you sure it is not $12/mo as a rider to an adult's term policy?

You said to let you know if we need to get our kids insured. If you can get me $50,000 WL DB for $12/mo You have a sale. In fact, I would like more than that DB if possible. Thanks.