Policy Owner Question

[WGO]

I am very new and have not run into this before even though it is very basic. Couldn't get ahold of my upline today so was hoping someone could help.

A father wants a small permanent policy on his 16 year old son wtih the main purpose being funeral expenses if something would happen to the son. The father will pay for it now, but would like to son to pay at some point in the future. My question is should the father or son be the policy owner and can the payor be switched in the future.
Thanks!

 

[VolAgent]

Son is 16 and thus can't be the policyowner. Yes, payor can always be changed.

For now, dad has to be the owner. Some companies will automatically transfer ownership to the son at 18 and some won't without an ownership transfer. Call the company in question you want to use and ask them how they handle it.

 

[jdeasy]

I am very new and have not run into this before even though it is very basic. Couldn't get ahold of my upline today so was hoping someone could help.

A father wants a small permanent policy on his 16 year old son wtih the main purpose being funeral expenses if something would happen to the son. The father will pay for it now, but would like to son to pay at some point in the future. My question is should the father or son be the policy owner and can the payor be switched in the future.
Thanks!

I can't imagine there is a state or ins co. that wouldn't require someone else be the owner for a 16 year old's policy.

Make the father the owner and payor and he can transfer ownership and/or payor status at anytime after the son becomes of legal age to own his policy.

 

[Guest]

We have a child's policy that is very popular so we do this all the time.

JDEasy nailed it. You just write the policy with the dad as the owner and payor, then when the kid is a legal adult the dad just transfers ownership to the son. Its a simple matter of filling out a form and sending it in.

 

[VolAgent]

I should also mention, you will probably need the son to sign the app. I believe at 16 most states will require his signature.

 

[WGO]

Thanks everyone! Just what I needed.

 

[RonRoberts]

If the father wants a policy on his 15 year old is simplified policy going to be the best product? I have not done the comparisons because I am out of town without any software nor have I quoted a 16 year old but it would seem to me that a participating limited pay wl may work out premium wise to be comparable, or even an overfunded UL. Just food for thought.