Children's Life Insurance - How to Start the Conversation?

[CarolinaAgent]

Another avenue to talking about Child coverage is to talk about the possibility that a child could be diagnosed with a medical condition sometime in the future that could cause them to be uninsurable or to be a higher risk to insure. I use my husband for example, he was diagnosed at age 12 with diabetes. If his mother had a policy on him before that it would have saved him a lot of money.

 

[VolAgent]

To expand on what Bob and InsuranceMonkey said. I bet Settlers, or pick a company, out sales Mass Mutual on child policies 10 to 1. Why? Because it is too much money. It is the same reason that many people don't buy 10 and 20 times income in term insurance. They can't grasp the need for all that money.

But they will buy smaller policies all day long on a child if you get them to understand the loss. The funeral expenses and then a month or two of not working or reduced income.

InsuranceMonkey, how many of the apps you do see that have the person anywhere near the issue limits? Especially on sub 100k incomes.

 

[InsuranceMonkey]

InsuranceMonkey, how many of the apps you do see that have the person anywhere near the issue limits? Especially on sub 100k incomes.

Very rarely. Maybe 1 in 20 where they are reaching income continuation limits.

Say a 40 year old earning 50k - Could qualify for 1.0 million. Much more likely than not they'll apply for 250k.

Case I'm on right now, 49/M income 88k, applying for 200k. He could apply for up to 1.3 mil with no questions asked.

I think the ones who apply for upper limits often have had a medical event in which their mortality has been dangled in front of them. Suddenly the "what if..." gets very real. Or it's upper income individuals who have financial and estate planners who have advised them on the benefits of coverage.

Farmers tend to get big coverage. The kids need the finances to buy each other out or risk splitting up the farm. I know several Agents who make $$$ income working the farm communities. Commission on a 3.0 mil 20y term policy will make your week. And you can typically get instant referals to family/friends-farmers just writing the app. I know I've approved farmer life policies up to 10 mil. There's some pretty big finances hidden behind those dirty overalls.