Barnegat couple left with $81,000 in student loans when son dies | APP.com | Asbury Park Press
To those who scoff at the idea of owning life insurance on their children.
To those who scoff at the idea of owning life insurance on their children.
To All Those Who Said Life Insurance on Children Was a Bad Idea
- Thread starter BNTRS
- Start date
-
- Tags
- life insurance
- 15,041
Re: To All Those Who Said Life Insurance on Children Was a Bad Id
I feel for the couple, but they signed the documents. While I disagree with ol' Dave Ramsey on many things, I do agree with him on this. Never co-sign for a loan you aren't prepared to repay in full.
They had many chances to handle this situation. Life insurance bought as a young child, life insurance as a teen, or a term policy once he graduated college. He had debts that wouldn't disappear at his death, he needed life insurance.
I feel for the couple, but they signed the documents. While I disagree with ol' Dave Ramsey on many things, I do agree with him on this. Never co-sign for a loan you aren't prepared to repay in full.
They had many chances to handle this situation. Life insurance bought as a young child, life insurance as a teen, or a term policy once he graduated college. He had debts that wouldn't disappear at his death, he needed life insurance.
Re: To All Those Who Said Life Insurance on Children Was a Bad Id
Exactly. There are some people out there though that get offended when you mention the idea of life insurance on a child.
In my opinion, I think the most that is needed on a child is 10,000 to 25,000 when they are younger. Recommend something that has good paid up options. In this case it would have been a good idea for the couple to purchase something more when these loans were taken out.
Exactly. There are some people out there though that get offended when you mention the idea of life insurance on a child.
In my opinion, I think the most that is needed on a child is 10,000 to 25,000 when they are younger. Recommend something that has good paid up options. In this case it would have been a good idea for the couple to purchase something more when these loans were taken out.
- 10,328
Re: To All Those Who Said Life Insurance on Children Was a Bad Id
Just another reason.
Most people never even consider LI on a kid until an agent mentions it; and as mentioned, some get offended at the thought that they might "profit" off of their childs death.
One of the main reasons to have coverage on a kid is to ensure their insurability in the future. Every kids policy sold needs to have a guaranteed insurability rider attached to it.
I used to work with an agent who was very passionate about this. One of his kids developed a condition at age 8 that made him uninsurable. Pretty much the only coverage that will ever be available to him would be through a GI work plan.
Most kid policies only cost $15 or $20 per month. A small price to pay for guaranteeing that your kid will always be able to have LI coverage.
Just another reason.
Most people never even consider LI on a kid until an agent mentions it; and as mentioned, some get offended at the thought that they might "profit" off of their childs death.
One of the main reasons to have coverage on a kid is to ensure their insurability in the future. Every kids policy sold needs to have a guaranteed insurability rider attached to it.
I used to work with an agent who was very passionate about this. One of his kids developed a condition at age 8 that made him uninsurable. Pretty much the only coverage that will ever be available to him would be through a GI work plan.
Most kid policies only cost $15 or $20 per month. A small price to pay for guaranteeing that your kid will always be able to have LI coverage.
- Thread starter
- #8
Re: To All Those Who Said Life Insurance on Children Was a Bad Id
I also love how they quoted some supposed expert who states:
This kid could have likely gotten a policy the day before he died for less than 15 bucks a month. If money was so tight that was impossible, they should have seriously reconsidered college from the start. Hell, I'll give up my weekly coffee habit if it means having the ability to avoid a monthly payment on some loans for which I'm on the hook if something happens to my son.
But take it to a different level, I see people all the time who have something like a $50,000 policy through work and a $200,000 mortgage and a pile of credit card debt and they are "all set" on the life insurance side of things.
I run into younger professionals all the time who have six figure student loan balances and zero life insurance but more importantly zero disability insurance. They talk about affordability all the time.
It really comes down to thinking you'll never be in that situation, and our having to force the uncormfortable issue.
I've forced people to take me step by step what they would do, everytime we eventually get to, "Oh yeah, forgot/didn't think about that."
I also love how they quoted some supposed expert who states:
This kid could have likely gotten a policy the day before he died for less than 15 bucks a month. If money was so tight that was impossible, they should have seriously reconsidered college from the start. Hell, I'll give up my weekly coffee habit if it means having the ability to avoid a monthly payment on some loans for which I'm on the hook if something happens to my son.
But take it to a different level, I see people all the time who have something like a $50,000 policy through work and a $200,000 mortgage and a pile of credit card debt and they are "all set" on the life insurance side of things.
I run into younger professionals all the time who have six figure student loan balances and zero life insurance but more importantly zero disability insurance. They talk about affordability all the time.
It really comes down to thinking you'll never be in that situation, and our having to force the uncormfortable issue.
I've forced people to take me step by step what they would do, everytime we eventually get to, "Oh yeah, forgot/didn't think about that."
- 4,132
Re: To All Those Who Said Life Insurance on Children Was a Bad Id
Everybody has an insurance plan. Some are funded and some are not.
Everybody has an insurance plan. Some are funded and some are not.
Re: To All Those Who Said Life Insurance on Children Was a Bad Id
On the other side of the spectrum...I have received more then a few requests lately from Mothers (here in South Sacto) for some type of AD (stand alone product) they can take out on their sons that are less then 30 years old due to all the Gang Banging going on.
On the other side of the spectrum...I have received more then a few requests lately from Mothers (here in South Sacto) for some type of AD (stand alone product) they can take out on their sons that are less then 30 years old due to all the Gang Banging going on.
