Insurance Agent Forum

[bobson]

Originally Posted by GreenSky

Unless and until your children support you, they are a financial drain. This makes them a liability.

Econ 101.

Rick

Yes, and we all know life is one giant math question....


We know people are rational creatures and we all know Obama is going to fix everything wrong with this God foresaken land....

[R. Paul Aguirre]

Originally Posted by MIBizInsurance

/smile

Its all good.

I have policies on my children not only for the above benefits but also to guarantee insurability in the future.

Main reason is if that horrid event happened we could take a short leave from work and not worry about money. Last thing I'd want is to deal with money at that point.

Two great points. Guaranteed insurability is huge, ING has a ROP Term that works great for a college fund or to have that piece of mind that regardless of health issues your child can get a permanent policy. Also funerals are expensive, but I think that above that you never know how you are going to cope with the loss of a child.... It might take some serious time to pull yourself together enough to earn an income and support your family.

[R. Paul Aguirre]

Originally Posted by atara

My spouse and I both have policies taken out by our parents and a young age and let me tell you - we are soooooo grateful. They are so cheap!

When our baby comes, we are definately taking about WL on our child. We are actually looking into a paid-up policy so we will be done with it when the child is 18 or 20 years old.

Becareful of the paid-up option your $50-100k policy might seem great now but with LE's on the rise when your child dies at age 127 that policy might not be that hot.

[Jorgens]

Great thread. I too have policies on my children. Mostly for the gaurenteed insurability. One of my kids already have th onset of diabetes so that will be huge. Another $500,000 of insurance at anytime at the best class.

The other thing that turn alot of people off are the internal rate of return. If your selling with a good company. It may not be the best idea to go permenant. There are only a few companies that I would consider getting permanant for children. IMO

[Hadley]

Life insurance for children may provide several benefits, including covering final expenses.

In addition, child life insurance plans may offer guaranteed insurability as an adult.

When your child reaches age 18, 21, or 25, with some policies, they may increase their amount of life insurance protection without proving insurability.

In addition, some plans offer coverage that cannot be canceled due to occupation, health, or military duty when the child grows up.

The plans may build some cash value, and loans may be taken from the policy cash value.

Life Insurance for children may provide a forn of financial security for the family your child may have one day.

[Russ]

What are the reasons for life insurance on children?

One other reason...creeps like..............

[moonlightandmargaritas]

Originally Posted by Hadley

In addition, child life insurance plans may offer guaranteed insurability as an adult.

What percentage of children become uninsurable as adults?

[healthagent]

...all the one collecting Happy Meal prizes

[LGilmore]

"What percentage of children become uninsurable as adults?"

It just seems like the ones I run across who want insurance.


It's an inexpensive rider, a couple bucks in most cases.

If you follow the health trends, you can figure the answer.

[crexsky]

1. As a replacement income for the children

If you are a parent with children depending on your income to survive, you will need to buy life insurance. It is to ensure that they still have income to survive after your death.

2. As a payment for final expenses.

You may incur debts every now and then and if you have passed away, the remaining outstanding debts will cause your children to carry more burden than they already have. If you bought life insurance when you are still alive, they can rely on the money to settle the debts after your death.

3. As an inheritance.

You can name your children as the beneficiaries of your life insurance so that they will still have some assets and money to ensure that they will continue to be financially independent even after your death.

4. As a method of saving money.

If you opt to buy a cash value plan for your life insurance, you will need to pay a regular premium towards the plan. This will then create a source of savings which will mature on your death for your children

[Tomfromtheshade]

I wasn't going to read every page of this thread, but you can be 100% certain that the child will get a standard non smoker rating. They can usually be re-underwritten at age 18 to get preferred or whatever you are aiming for. However, the benefit of getting a policy on a child (if for no other reason) is for the child. You can buy a $100,000 UL on a kid and the policy will be worth a fortune later in a life. They will never get the same low rate on that coverage if they were to buy it at the age in which people normally buy life insurance (early thirties). Look at it as a favor for your child. They will thank you for it, and their children will thank you for it.

[LRG]

Number one reason I see kids apps come across my desk is to protect insurability, and all of them have a GIPO or GIO feature.
Second reason is to protect parents if child dies.
Third is to begin the creation of an estate.
The most common way I see kids getting insured is via child riders........
Most childrens riders are automatically paid up on the owners death. So if the owner is over a certain rate, they will decline the child riders.

Just about all carriers require the parents and ALL siblings to be covered. Mom and Dad should have at least 2 times as much as the kids when dealing in nominal amounts. Max on kids, without specific need, is usually around 100K and all the kids better be insured equitably or no one gets insured. I can make a case for a 16 yr getting ready for college needing 100K and his 9 yr old sister only applying for 25K without a problem. But I can't insure one child out of a group.....sends all sorts of red flags up..........

Most childrens apps, which are 20pays (that I see anyway) have a great persistancy rate. And I think personally that they are great gifts to the young adult. Did it for all my kids.

[ProsperSBC]

To lock in insurability at the lowest possible cost in the persons life.