What are the reasons for life insurance on children?

maryjd123 · 01-13-2007, 10:35 PM

You cannot get to the page you are inquiring about -- reason why -- i have the rate book -- of course that is why we are agents right?
If you want to email me at mcdonalds@insurer.com i can get you set up
And please forgive my typo wl is supposed to be ul -- universal life -- it is by 5star life insurance company -- minimum coverage is 50k and maximum is 500k -- up to 1OOK they are only looking for a statement of health ages 1 - 49 --- ages 1-17 if you wanted any more insurance than that -- special home office approval up to250k

I can also get term insurance 50k for 4 dollars a month for the kids as well 1-17.

My husband is looking to retire very soon -- hopefully if they let him -- he is due for another surgery march 1st on his back -- after this we will wait for his med-board with the military and we will see -- please keep your fingers crossed -- i am anxious to get out of wyoming and move back to ohio!! anyways thru afba our insurance is 26 dollars a month because he is active duty -- for 400k -- i am very thankful !! i know what the rates are for americo, f&g and everyone else...

Anyways just email me and ill send you the info

Mary

marcircus · 01-13-2007, 11:26 PM

Thanks for your reply.

Actually they already have WL and VUL coverage.

This term for $4.00/mo. What's the period of coverage? I did not think there was term available for children except as rider's to a parent's policy and then only in amounts that are really just final expense policies.

marcircus · 01-14-2007, 12:52 PM

1. maryjd123: "you cannot get to the page you are inquiring about --
Reason why -- i have the rate book -- of course that is why we are agents right?"

You mean these rates? http://www.5starima.com/Executive%20...%208-15-05.pdf

2. maryjd123: "please forgive my typo wl is supposed to be ul -- universal life -- it is by 5star life insurance company -- "

I don't see any UL in their product offering http://www.5starima.com/html/products.htm

3. Are you just trying to get your foot in the door with me? or do they have a product for children that is as good a deal as you state you are able to provide a client?

maryjd123 · 01-14-2007, 02:04 PM

One question -- why is it that i always have to prove myself? and why do i need to get my foot in the door with you? i can send you a brochure so that you can see what i am talking about -- the product i have is supposed to be for military only -- but it can be for non-military -- this is why it is not listed on the website you have directed. -- by 5star..

This is a 5Star Universal Life Insurance Policy with The Armed Forces Benefits Association

And the rates you were directing to --- No I don't mean those rates.

I already explained the product in the earlier post. If you want some info about it I can fax you on Tuesday. Because we are military we have the day off Monday. This is the same product that has open enrollment once a year -- i was able to get the girl with melanoma a 50k policy in October of 06 because of open enrollment -- the only requirement was no declines or anything listed on the MIB -- as long as it was clean i got her a policy -- again they do this once a year at the end of the fiscal year. -- so if anyone really needs insurance you might want to keep my name for later.
She is 24 and she is paying 22 a month for a 50k policy that will never cancel or go down in benefits.
But like i said earlier -- any child ages 2 weeks to 17 can get a 50k policy with a statement of health.

For the term -- you can get a 10yr, 20yr, or 30yr policy - still very cheap compared to other carriers -- minimum is 50k to start

marcircus · 01-14-2007, 02:07 PM

One question -- why is it that i always have to prove myself?

You don't.

Thanks for the offer(s)? anyway.

maryjd123 · 01-14-2007, 02:11 PM

I apologize -- I have to get over the fact that this is a new board. And I have a headache this mornin --

Again if you need anything let me know -- I'm normally not so bitchy..

Mary

maryjd123 · 01-14-2007, 02:36 PM

Almost forgot

This is NOT a rider to the parents policy -- this is their own policy

NAAripoff · 12-16-2007, 09:38 PM

What is sad is that life insurance, even Term, is denied children born with disabilities such as autism, MR, etc. even though they live as long as anyone else! This is discrimination I think.

slushhhpuppie · 12-17-2007, 03:50 PM

Originally Posted by NHB_MMA

Beyond the fact that it's dirt cheap, what are the reasons for people to buy life insurance on children? Please give me some opinions you've heard, whether or not you agree with them (though I welcome comments and opinions).

Assume you buy a policy on a kid at age 3.

At age 10, he develops leukemia.

At least now he has some coverage.

Agent Jeff · 12-17-2007, 04:12 PM

Why buy insurance on children since they aren't making you money generally? How about as a psychological hedge? You are betting on something happening that you don't want to happen for psychological reasons rather than financial ones.

Mr. Bill · 12-17-2007, 06:22 PM

Take a look at this article, and you will know why to purchase the insurance (sadly!):

Sign Up

moonlightandmargaritas · 12-17-2007, 06:31 PM

Any kind of permanent life insurance on children is generally a waste of money.

I know, I know..."it guarantees their insurability". What are the chances (statistically, that is) that a young child will become "uninsurable"? Check it out - it's miniscule.

Cash value for college, etc.?

Check out what an equivalent amount invested in a solid mutual fund returns versus the cash value - not even close!

Now I'm not anti-lifeinsurance - as a matter of fact far from it! If you need burial expenses and a fund to get you through the grieving, it's better accomplished, financially that is, through a dirt cheap rider on your own life insurance policy.

If you have small children, use the dollars to insurance yourself - they need the money much more if you're not around, than you do if they're not around.

*STIBROKER@AUSTIN.RR.COM* · 12-17-2007, 06:53 PM

Thats what I write on my clients that want and believe in life insurance on their kids....the last one was a couple of moths ago....2 yr old....$50,000 wl guardian....about $55 a month locked for life.....

Originally Posted by moonlightandmargaritas

Any kind of permanent life insurance on children is generally a waste of money.

moonlightandmargaritas · 12-17-2007, 07:27 PM

Originally Posted by STIBROKER@AUSTIN.RR.COM

Thats what I write on my clients that want and believe in life insurance on their kids....the last one was a couple of moths ago....2 yr old....$50,000 wl guardian....about $55 a month locked for life.....

Great, let's analyze this...

If you're concerned about burial expenses/grieving fund, you can purchase a kiddie rider on your own policy for what - $5.00 a month?

That leaves you $50/month to invest. At college time (16 years) at 8% average annual return, you have $19,489.53.

What's the cash value?

*STIBROKER@AUSTIN.RR.COM* · 12-17-2007, 07:29 PM

No....and college fund was not the propose....

Originally Posted by moonlightandmargaritas

Great, let's analyze this...
If you're concerned about burial expenses/grieving fund,

*STIBROKER@AUSTIN.RR.COM* · 12-17-2007, 08:20 PM

So......why would they do this.....this is the forth one I have written on this family.....do we have another analogy.....

*STIBROKER@AUSTIN.RR.COM* · 12-18-2007, 11:09 AM

Well while Paul tries to get his head out of termville ...the reason is that they will eventually turn the policy over to their kids as a gift when they eventually get married because they get life insurance and want to pass the importance of it to their kids......I have had several grandparents do this for their grandkids also....so the next time you are trying to shove something down someones throat because you believe its the best deal in your eyes you might want to talk to your client and let them tell you what they want......

arnguy · 12-18-2007, 11:26 AM

Excellent advice, STI. Give the client what they want to buy, not what you want to sell them!

James · 12-18-2007, 01:54 PM

Originally Posted by moonlightandmargaritas

Great, let's analyze this...

If you're concerned about burial expenses/grieving fund, you can purchase a kiddie rider on your own policy for what - $5.00 a month?

That leaves you $50/month to invest. At college time (16 years) at 8% average annual return, you have $19,489.53.

What's the cash value?

Invest in what? 8%, is that tax free? Is it tax free when given to the child? Does it have a DB that will last as long as the life of the child?

moonlightandmargaritas · 12-18-2007, 04:29 PM

Originally Posted by James

Invest in what? 8%, is that tax free? Is it tax free when given to the child? Does it have a DB that will last as long as the life of the child?

Invest in quality, large cap growth funds. Many have returned an average of 14% annually over the last 20 years. Two examples would be Longleaf Partners, and Fidelity's Contrafund.

So 8% shouldn't be that hard...

Taxable or no, it BLOWS AWAY any cash value in a permanent insurance policy - so that doesn't make any difference.

Death benefit that will last the life of the child? What's the point? Shouldn't you buy enough insurance to replace your income if you have dependents? What kind of income does $50,000 in db replace?