FE Client Wants Coverage for Gradkids

[schealthagent]

Alright, so I just switched my focus to FE (and learning more about life in general) and have been working some leads. The goal was to simplify things for a bit and get a break from the increasing premiums and service issues in health.

Of course, my first sale wants to find out about coverage for the grand kids. Of course, I am going to direct the conversation to coverage for the parents for obvious reasons but we all know how some groups of people (those who are bombarded with gerber grow up commercials all day) are convinced that it's the best gift they can give their grand babies.

SO, assuming the parents are adequately covered; what do you all recommend for kids in the lower income brackets?

If the parents need additional coverage, of course I'll move towards child riders but can anyone tell me which companies child riders are convertible? What happens to the child rider if the parent passes away and the death benefit is paid?

Thanks!

 

[jdeasy]

Alright, so I just switched my focus to FE (and learning more about life in general) and have been working some leads. The goal was to simplify things for a bit and get a break from the increasing premiums and service issues in health.

Of course, my first sale wants to find out about coverage for the grand kids. Of course, I am going to direct the conversation to coverage for the parents for obvious reasons but we all know how some groups of people (those who are bombarded with gerber grow up commercials all day) are convinced that it's the best gift they can give their grand babies.

SO, assuming the parents are adequately covered; what do you all recommend for kids in the lower income brackets?

If the parents need additional coverage, of course I'll move towards child riders but can anyone tell me which companies child riders are convertible? What happens to the child rider if the parent passes away and the death benefit is paid?

Thanks!

For riders, it's hard to beat AmAm's grand-child/great grand-child rider. It's $5000 coverage for $1/mo. per child. At age 20, it's convertable to a $25000 policy with no medical questions. If the primary insured dies, the rider is paid up.

I don't like to do rider, but, sometimes, premium dollars dictate that decision.

For stand alone coverage on grand children or children, I always go with RNA. Did a couple this week. One grandchild was 4 mos. and the other 2 years old. We did a $25,000 whole life that is paid up in 20 years. The monthly premium on the 4 mo. old was $12.68 and on the 2 year old it is $13.29. $10,000 would have been $7.68 and $7.93.

Most grandparents and parents like the idea of a stand alone policy on the kids, especially the ones that are paid up.

It's still about the money. I did one of the AmAm riders for a guy that had 13 grand-children. He could pay $13/mo. He couldn't pay for an individual policy on all 13 of them.

 

[LGilmore]

Look for a policy that offers guaranteed coverage increases. Guaranteed insurability options.

Why? A child's health can change in a blink or over years of bad habits making them uninsurable. The guarantee remedies that. While a 25k policy is nice, a 25k policy with guraranteed increase options of 100k 9 times during their life is better.

 

[STIBROKER]

wholelife policy the grand kids....

 

[WinoBlues]

That AmAm rider sounds like an easy legacy sale. Grandma dies and each grandchild gets a couple thousand and a paid up policy. Is it limited to $5,000?

For riders, it's hard to beat AmAm's grand-child/great grand-child rider. It's $5000 coverage for $1/mo. per child. At age 20, it's convertable to a $25000 policy with no medical questions. If the primary insured dies, the rider is paid up.

I don't like to do rider, but, sometimes, premium dollars dictate that decision.

For stand alone coverage on grand children or children, I always go with RNA. Did a couple this week. One grandchild was 4 mos. and the other 2 years old. We did a $25,000 whole life that is paid up in 20 years. The monthly premium on the 4 mo. old was $12.68 and on the 2 year old it is $13.29. $10,000 would have been $7.68 and $7.93.

Most grandparents and parents like the idea of a stand alone policy on the kids, especially the ones that are paid up.

It's still about the money. I did one of the AmAm riders for a guy that had 13 grand-children. He could pay $13/mo. He couldn't pay for an individual policy on all 13 of them.

 

[Cornelius]

ChildGUARD

 

[Death Cab For Tootie]

Look for a policy that offers guaranteed coverage increases. Guaranteed insurability options.

Why? A child's health can change in a blink or over years of bad habits making them uninsurable. The guarantee remedies that. While a 25k policy is nice, a 25k policy with guraranteed increase options of 100k 9 times during their life is better.

This. Well said, LGil.

 

[g-squared]

Parents should have 1x - 2x income in permanent insurance, 6x - 9x income in group and/or term insurance. Once they are adequately covered, then you can worry about kids. We like a $25,000 20-pay for kids (with additional insurance rider) or whatever $30/month buys in face amount on the 20-pay with the add'l insurance rider.

 

[WinoBlues]

Those sound like some hard fast rules.

Does it depend on the income of the parents? Or the age of the parents or the age of the child? or the ...........

Just saying.

Parents should have 1x - 2x income in permanent insurance, 6x - 9x income in group and/or term insurance. Once they are adequately covered, then you can worry about kids. We like a $25,000 20-pay for kids (with additional insurance rider) or whatever $30/month buys in face amount on the 20-pay with the add'l insurance rider.

 

[LGilmore]

"Just saying." yea, I know....



Me thinks someone's quoting their trainer...

Reality has taught us, everybody is different and hard fast rules rarely apply in the field. They do sound nice in the office though, but are pretty meaningless when you get out there.

We fix what bothers people. We don't know till we ask and they actually tell us.