Juvenile Policy

[WGO]

I am a high school teacher that does some part-time term sales with Transamerica. I have done a couple of Monumental final expense policies. A friend contacted me and wants $10,000 policies on his two teenage boys to cover funeral expenses in case something happened to them. I discussed with him the remote chance of something like this happening, but he is adamant. This is what he wants. $10,000 on each boy and no more.
I just wanted some opinions. What would you advise?
Is Juvenile final expense appropriate in this situaiton?
Thanks

 

[jdeasy]

I am a high school teacher that does some part-time term sales with Transamerica. I have done a couple of Monumental final expense policies. A friend contacted me and wants $10,000 policies on his two teenage boys to cover funeral expenses in case something happened to them. I discussed with him the remote chance of something like this happening, but he is adamant. This is what he wants. $10,000 on each boy and no more.
I just wanted some opinions. What would you advise?
Is Juvenile final expense appropriate in this situaiton?
Thanks

I'm in favor of limited pay plans for the younger people. Monumental has a 10 pay and since you are already contracted with them it would be easy to write.

I would also look at RNA's 20 pay. It's a $25,000 minimum for 18 and up. $10,000 minimum for ages 0-17.

 

[Norwayguy]

I am a high school teacher that does some part-time term sales with Transamerica. I have done a couple of Monumental final expense policies. A friend contacted me and wants $10,000 policies on his two teenage boys to cover funeral expenses in case something happened to them. I discussed with him the remote chance of something like this happening, but he is adamant. This is what he wants. $10,000 on each boy and no more.
I just wanted some opinions. What would you advise?
Is Juvenile final expense appropriate in this situaiton?
Thanks

Are you really going to argue with him? Sell him what he wants. I might mention the todays cost and how cost rise and with thier young age might show them something larger with guaranteed purchase option.

 

[WinoBlues]

I am a high school teacher that does some part-time term sales with Transamerica. I have done a couple of Monumental final expense policies. A friend contacted me and wants $10,000 policies on his two teenage boys to cover funeral expenses in case something happened to them. I discussed with him the remote chance of something like this happening, but he is adamant. This is what he wants. $10,000 on each boy and no more.
I just wanted some opinions. What would you advise?
Is Juvenile final expense appropriate in this situaiton?
Thanks

The "and no more" ham strings you. IMHO. There are a lot of solutions that would beat a FE plan when looking at most bang for the buck. If he is a friend I would at least make him aware of them. But sell him what he wants.

FE will be the easiest. But there are companies that go down to $10,000. That probably have better cash values Cincinnati Life comes to mind but I am sure there are more. You can 10 pay the Cincinnati plan.

Edit: as I type this there is a group at the next table talking about going to a funeral today for a child. And taking up a collection. Sad.

 

[STIBROKER]

I discussed with him the remote chance of something like this happening, but he is adamant.

yea......children don't die........

 

[WinoBlues]

yea......children don't die........

Youngest claim I have paid out was a little boy age 16 days. Natural causes. I wrote the policy the day before. One of the oldest was about 89, died in an accident.

 

[VolAgent]

Youngest claim I have paid out was a little boy age 16 days. Natural causes. I wrote the policy the day before. One of the oldest was about 89, died in an accident.

I believe that was sarcasm on STI's part.

What most people don't get is that the biggest expense with a child's death is loss of income. Yep, loss of income. Do you really think you'll be right back at work the next day and put in 40 hours a week like always? Or if you are commissioned, that you will be on top of your game and selling just like before?

The funeral isn't that big relatively speaking. You really should have 10k in a savings account or other place that is easy to access. Of course, the parent doesn't, which means that loss of income will be that much worse.

 

[G.Gordon]

Humana sells a Junior Estate Builder product. $45/year for $15,000. I think it is $35/year for $10k.

 

[WinoBlues]

I believe that was sarcasm on STI's part.

What most people don't get is that the biggest expense with a child's death is loss of income. Yep, loss of income. Do you really think you'll be right back at work the next day and put in 40 hours a week like always? Or if you are commissioned, that you will be on top of your game and selling just like before?

The funeral isn't that big relatively speaking. You really should have 10k in a savings account or other place that is easy to access. Of course, the parent doesn't, which means that loss of income will be that much worse.

I got the sarcasm. Probably did not come over that I was agreeing 100 percent with him.

On your point, ditto, that is a big part of my child rider, sale. Add to that the family needing you home as they deal with the loss. Good point.

 

[STIBROKER]

yea...the remote chance comment is interesting.....life insurance is to insure life....no matter how old you are....if you are alive you also can be dead...at any age.....

I got the sarcasm. Probably did not come over that I was agreeing 100 percent with him.