What are the reasons for life insurance on children?Go to Top
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).
I would assume the same reasons why people buy W/L insurance now, a financial tool the has a DB attached to it. While I'm sure no one anticipates ones child death but it does happen. My brother lost his little girl at the age of 7 in a drowning accident. One of the saddest things I ever went through, helping my brother bury his child. I have a healthy W/L on my son, I surely hope I never have to cash it in and the main reason for it is a savings account for him when he retires. Now W/L, the C/V is outstanding if you have 60 years of growth.
Better not say things like that, some will accuse you of acting as a financial rep, whatever that is!
Yeah, I know you're a WL believer. Check out my next to last post on the thread about swinging my first big deal tell me what you think about my assessment of permanent insurance.
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.
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.
That is an excellent point. I never thought about the fact that someone might need to take an extended leave of absence from work and that additional death benefit would fund it.
Admittedly I dont sell a lot of life insurance, much less on kids. But the primary reason (at least in my mind) for the coverage (beyond last expenses) is providing a financial cushion so the parents have time to grieve in dignity. I can think of nothing worse than having to bury your child, then know you must return to work the next day to pay the bills and keep your home.
Over the last several years I have known a handful of people who have lost children. One woman took a leave from work and has not returned yet. Her daughter died almost 4 years ago in a car accident and the mom has had severe emotional issues since.
Another friend was seriously injured ($1M+) in a car accident that took the life of her son. She is still recovering (physically & emotionally) 3 years later. They took the life insurance proceeds and established a scholarship fund in his memory.
Her son graduated from high school just 2 months before the accident.
People who say you should not buy life insurance on a child because there is no lost income to replace have never known anyone who has lost a child. The child may not have generated income, but the parents who were raising the child were. How much of THEIR income should be replaced to allow them time off to mourn the loss of their child?
Over the last several years I have known a handful of people who have lost children. One woman took a leave from work and has not returned yet. Her daughter died almost 4 years ago in a car accident and the mom has had severe emotional issues since.
Another friend was seriously injured ($1M+) in a car accident that took the life of her son. She is still recovering (physically & emotionally) 3 years later. They took the life insurance proceeds and established a scholarship fund in his memory.
Her son graduated from high school just 2 months before the accident.
People who say you should not buy life insurance on a child because there is no lost income to replace have never known anyone who has lost a child. The child may not have generated income, but the parents who were raising the child were. How much of THEIR income should be replaced to allow them time off to mourn the loss of their child?
Another excellent reason. Most people never have to go through this awful experience (I talked about it with a prospect yesterday and it was awful even discussing it) fortunately and do not understand how it can impact them.
Insurance on children would be a WL sale in almost every instance, me thinks. You're probably looking at a relatively low amount say less than 100K and surely no more than 250K, so affordability shouldn't be a big issue. Plus, you can sell it as building a permanent asset for the children. If you're selling term, then you might as well make it $1M cause it's so cheap at that age (plus part of you wants to make the sale worthwhile). Then you sort of feel like you're promising serious bankroll on a tragedy.
Worthwhile? I think the way you put things is a bit much sometimes. Children Ins is usually brought by Grandparents and they give the ownership to the Parent while they pay yearly premiums. Usuall amount would be 10-25 grand W/L, with provisions that at certain ages they can double or triple the amount of coverage if they desire so when the child grows into an adult.
I ususal offer this while selling MA's or Supplements if I see picts of grandchildren or they speak of grandchildren, its a service. I use one company that pays 20 dollars to me. The best I did was selling a MA then adding on 6 app's for her grandchildren that she gave to the parents as a gift. So I made an extra $120 on the sale, as I stated it is a service added on to build a good relationship. I'm still trying to get the Grandparent to buy a LTCi, so I see everything as a on going struggle to service my clients.
I too, don't think that there is much money in selling on children, f it is done rarely, but you can easily make a couple of extra grand a year selling riders, if you do a lot of life.
I too, don't think that there is much money in selling on children, f it is done rarely, but you can easily make a couple of extra grand a year selling riders, if you do a lot of life.
One company I use a policy easy to sell to grandparents, it pays $20 per application, that is about the yearly premium. Small little W/L on their grandchildren they use as gifts for the parents of their grandchildren. While it is little I do it for a service, makes them feel good and is a cheap Xmas stocking stuffer. Yet I wouldn't market this but when out selling to seniors its just a add on suggestion.
$20 per submitt???????? How about $150 per app!! If you run 10 appntments 3 days a week 30 appointments- 5 sales 1.5 apps per house = about 7 sales per week. I did it for a while and it works!!! The down side is that is easy to get burnt out. The leads are easy to get, the appointments are easy to set. They do however canx alot or no show. If you have 10 appointments in 1 day it may take you 20 visits to all of the houses to get in to 7.
$20 per submitt???????? How about $150 per app!! If you run 10 appntments 3 days a week 30 appointments- 5 sales 1.5 apps per house = about 7 sales per week. I did it for a while and it works!!! The down side is that is easy to get burnt out. The leads are easy to get, the appointments are easy to set. They do however canx alot or no show. If you have 10 appointments in 1 day it may take you 20 visits to all of the houses to get in to 7.
I not going to sell Insurance for Children as my main product nor am I going to market it. Yet I will mention it if I see a need, I use a ultra cheap product that provides limited amount of DB, its dirt cheap and affordable for Grandparents to place and give away to the Parents.
What are the reasons for life insurance on children?
Linear Mode
