Juvenile Life Insurance

Discussion in 'Life Insurance Forum' started by bluesuit, Aug 24, 2017.

  1. bluesuit
    Offline

    bluesuit Expert

    Posts:
    27
    Likes Received:
    0
    NY has special law for among of coverage each child can get, does any other state have the same ?
     
  2. eersfan
    Offline

    eersfan Expert

    Posts:
    87
    Likes Received:
    5
    Doesn't surprise me that NY has that law...as they try to legislate every aspect of a person's life. Most, if not all, life insurance companies have their own specs as far as how much life insurance can be placed on a juvenile...typically, the parent(s) have to have a multiple of 5 or more on their lives.
     
  3. adjusterjack
    Offline

    adjusterjack Guru

    Posts:
    362
    Likes Received:
    28
    State:
    Arizona
    The following is the NY statute:

    Insurance - Article 32 - § 3207 Life insurance contracts by or for the benefit of minors; on the lives of minors, limitations on amount. :: 2016 New York Laws :: US Codes and Statutes :: US Law :: Justia

    I have been unable to find a state by state guide so you will have to check each state's life insurance statutes to find the answer to your question.
     
  4. eersfan
    Offline

    eersfan Expert

    Posts:
    87
    Likes Received:
    5
    NC has no statute that I am aware of. Life insurance companies will tailor their requirements to any state-specific statute.
     
    Last edited: Aug 24, 2017
  5. VolAgent
    Offline

    VolAgent Guru

    Posts:
    13,268
    Likes Received:
    66
    State:
    Tennessee
    Much ado over nothing.

    Only one thing, the law does not make clear if it is the greater/lesser of $50,000 or 50% of what is in force on the parent. It lists both limits but does not say which is the cap. For instance, if a parent had a $1,000,000 policy, are they limited to $500,000 on a child or $50,000? I don't see where the law makes it clear which cap applies.

    Many companies have similar guidelines and many go so far as to require coverage be equal on all children.

    Also in an amazing show of restraint, NY did not require domestic companies to apply this rule in all states in which they do business, merely NY.
     
  6. pfg1
    Offline

    pfg1 Guru

    Posts:
    1,080
    Likes Received:
    1
    State:
    Virginia
    My uneducated guess would be 50% of the parent. $50k is not much - especially in the wealthy parts of NY.

    ----------

    I have not seen companies that require 5x. I guess they could be out there, but most I've dealt with require 2x for one of the parents, and the same amount for the other.
     
  7. VolAgent
    Offline

    VolAgent Guru

    Posts:
    13,268
    Likes Received:
    66
    State:
    Tennessee
    Yeah, but you are thinking as an insurance professional and not an uneducated legislator. Also, when was the law passed? Depending upon the age of the law, $50,000 may have been a lot of money.
     
Loading...

Share This Page