People Have Too Much Life Insurance?

[Gooner]

The ultimate problem is that americans are just plain stupid when it comes to finances. Most of us do not understand basic financial concepts.

That's hitting the nail directly on the head!

 

[scagnt83]

Your kid does not need life insurance. You need life insurance on your kid as a buffer to help your survive through the grief, depression, guilt, and financial burden that can result. When a 17 year old boy was killed I saw two parents who were so grieved they were literally out of their minds. They had no business going back to work immediately but I know they had to.

Ive seen the same thing. How many times have you seen collection jars put out at restaurants to help pay for the funeral of a child? But beyond that there is just the grief of loosing a child. Who can honestly say if they could or could not go directly back to work after something like that?? Then there is just the issue of guaranteeing future coverage as an adult for that child. We have all dealt with young declines because of "unexpected" health issues at a young age. A child policy with a GIO Rider eliminates that problem. It is just smart financial planning for a family.

 

[WinoBlues]

Ive seen the same thing. How many times have you seen collection jars put out at restaurants to help pay for the funeral of a child? But beyond that there is just the grief of loosing a child. Who can honestly say if they could or could not go directly back to work after something like that?? Then there is just the issue of guaranteeing future coverage as an adult for that child. We have all dealt with young declines because of "unexpected" health issues at a young age. A child policy with a GIO Rider eliminates that problem. It is just smart financial planning for a family.

A few years ago a consumer came onto the forum asking for some help. Turns out he had an old Prudential policy that had GIO options that had not been used. He had been in a major auto accident and was no paralyzed chest down and has some internal organ damage. The policy had been written 1 week before. Those GIOs are very important. They policy also has WP so he is not paying for the old policies nor will he pay for the future plans. I have also converted child term plans on very ill young adults, one in a coma.

I am a big believer in child coverage.

 

[ATM]

One of the very first policies I ever wrote was on a young couple with three young children. They did not have much money but purchased I think 100k on husband and 75k on wife as both worked. I tried hard to get them to put child riders on their polices but they didn't want to spend the extra $10 or whatever it was.

A couple weeks after delivering the policies they called and told me they had an accident and the wife had run the youngest over in the driveway and killed him. they did not have the money for a funeral so they had to borrow it.

Each month for the next 5-10 year they had to cut a check to a bank to pay for their sons funeral.

Don't tell me you don't need insurance on your kids.