- 5,920
A rider is cheep and short. A policy is fixed and forever.
Explain it this way and your client will most likely see the value.
Explain it this way and your client will most likely see the value.
Children's term rider with no underwriting
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- child term rider
- 26,086
I am a fan of both. I have written both for years. many times I will write a stand-alone policy on the child and add child rider to mom's policy also. But my emphasis is insuring the parents.
I just converted a $5,000 UH child rider into $30,000 non par WL policy. no exam, no health questions, no PHI. At standard rates.
If she had been underwritten, if her mother could talk her into doing it, she would have been FE. So she got a superior policy at 6 xs the face and lower cost.
Just issued a single mom with 4 kids. She had to go with FE due to mental health issues. So the $50,000 on her was more important than spending premium dollars on individual policies on the kids. $50,000 Plus ADB plus $20,000 each child. $119mo
I have converted, young adults in comas, homeless drug addict prostitutes, vegetative state and more. Also paid claims on a 17 day old baby born with a heart defect.
I believe child riders have a place.
Many ways to do what we do.
I just converted a $5,000 UH child rider into $30,000 non par WL policy. no exam, no health questions, no PHI. At standard rates.
If she had been underwritten, if her mother could talk her into doing it, she would have been FE. So she got a superior policy at 6 xs the face and lower cost.
Just issued a single mom with 4 kids. She had to go with FE due to mental health issues. So the $50,000 on her was more important than spending premium dollars on individual policies on the kids. $50,000 Plus ADB plus $20,000 each child. $119mo
I have converted, young adults in comas, homeless drug addict prostitutes, vegetative state and more. Also paid claims on a 17 day old baby born with a heart defect.
I believe child riders have a place.
Many ways to do what we do.
In this instance, the child rider is probably the best route to take. The child can convert the child rider at age 25 at standard rates (and typically for 5x as much coverage). In the present moment, one of the parents likely needs additional life coverage anyway (we know there is a dependent child at home), and the cost would be relatively cheap.
- 5,920
The issue with riders are the health questions they may ask, sickel cell anemia can be a deal breaker. Another issue is conversion is always a great option, but often the client will not take advantage of it when that time comes.
With sick young ones I always push for their own policies when possible. The known is always better than the unknown in my mind. It is also easier to explain to them, and the clients better understand the simple concept of, "it never changes."
The key is we each know our clients, and much of this is a philosophy of how best to approach complicated situations with more than one option.
- 6,025
The rider is meaningless if it isn't convertible without any health questions or other conditions and does convert.
My issue is I'm 60 years old - if I die in 5 years and the child is only say 10 - who then advises the client on their conversion options?
- 6,025
#Truth
- 26,086
Do you know of many child riders that are not convertible?
If so, only sell the convertible ones.
How is it worthless if it pays at death? I have paid claims on more than a few child riders.I have a client, one of about 15 clients in that family, That I converted a $20,000 rider into $100,000 GUL. He is in a vegetative state. As he was when the policy was written.
""who then advises the client on their conversion options?""
Who would advise the 10-year-old?, Ah, his mom? She would most likely become the owner if not already.
Many ways to do what we do.
- 6,025
If the original Agent is dead - who advises the Mom?
- 26,086
If the original agent that sold the dad the child policy is dead, who advises the 10-year-old child? The Mom? The new owner. My 10 year olds did not get a vote.
So, in your experience. If you have a couple or a single parent. They have 4 kids between them. They have no insurance, the children have no insurance. They only have a $150mo budget. Do you hands down do $20,000 of Whole life on each child then the balance of the bread-winning parents?
OK, OK are talking scenarios. You have a young single mom of four. A referral from her FE mom. Oh, and she is adamant she wants permanent only. Mom, said it is the best.
This young lady is also going to have to settle for an FE policy. Mental health and Build. Or a highly rated GUL. Young mom has zero insurance. She says she can do about $100mo. How do you divide that premium up?
- 4,300
Similar to what you said earlier, I'm focusing on mom's coverage, getting as much as possible on herself, then a rider on the kids in order to stay well within her stated budget.
There are definitely good points to writing individual policies on kids. But when I've got a prospect like this who's new to insurance, I start her out with the "family plan" (as some call it). If she handles that ok, I can suggest individual policies on each of the kids at a later review.
