Children's term rider with no underwriting

[Life Hawk]

I'm focusing on mom's coverage, getting as much as possible

Exactly!

in order to stay well within her stated budget.

Spot on. Sell too much and it will always slide off the books.

I often will ask some "stupid" questions, "How likely is that your child will die before you? How much would you loose if your little one, Lord forbid, would pass away? How much income would your little one loose if you you died? ...pause, Pretty much all of it. (shaking your head in an understanding way.) Can you see now how important it is to protect you for them?"

It's not like your revealing anything new, your just tapping into what they already know.

 

[WinoBlues]

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.

Yup. Who says people can only have one policy?

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.

That. / \ /\ /\

I have some very large individual policies on kids of clients. However, the clients have to have much larger policies in force for underwriting to consider it.
A $25,000 individual Whole Life policy on 10 year old is going to do next to nothing for that child in 20 years. Small cash value and a devalued death benefit. GPO options are a big plus.

In my example I just placed the WL and am going to try to back fill it with term to get the kids grown.

 

[inreverse]

Thank you Lee, you are an asset to the forum even if you are from California!

 

[WinoBlues]

Thank you Lee, you are an asset to the forum even if you are from California!

HaHaHa

CA - May not be for long.

 

[NewbieNewbie]

One thing to check on cause I have had this happen. Is it sickle cell or the sickle cell trait. Double check. They are miles apart in uw.

 

[myinsurebiz]

I always suggest child / grandchild riders to every client.

In all cases - the child can get a base death benefit that can be converted 5x, 10x or whatever the amount is for that carrier.

I also like the 10 Pay from SNL for kids . . . When they get married or buy a house, etc - they can sell the policy for cash [ in most States ]

 

[WinoBlues]

I always suggest child / grandchild riders to every client.

In all cases - the child can get a base death benefit that can be converted 5x, 10x or whatever the amount is for that carrier.

I also like the 10 Pay from SNL for kids . . . When they get married or buy a house, etc - they can sell the policy for cash [ in most States ]

What if you die before the client converts?

sorry, just yanking your chain.

Are you primarily selling SIWL?

 

[myinsurebiz]

What if you die before the client converts?

sorry, just yanking your chain.

Ha - I hear ya. Thread made me think of some sort of "reminder" that Agents can use to notify their current clients [ owners and benies ] of what their options are in the future.

Are you primarily selling SIWL?

I like Term for younger folks with ROP or plans to convert + a small $25k Whole Life.

I like FE for older or sick folks.

 

[WinoBlues]

Ha - I hear ya. Thread made me think of some sort of "reminder" that Agents can use to notify their current clients [ owners and benies ] of what their options are in the future.



I like Term for younger folks with ROP or plans to convert + a small $25k Whole Life.

I like FE for older or sick folks.

Check out UHL ROP Term for your younger FE types looking for a 20 pay. May may be an option. Compared to a straight SIWL.

 

[Cornelius]

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?

Leave a note with your Estate Plan paperwork for the person who will settle the estate.