What are the reasons for life insurance on children?

[NHB_MMA]

Over the last several years I have known a handful of people who have lost children. One woman took a leave from work and has not returned yet. Her daughter died almost 4 years ago in a car accident and the mom has had severe emotional issues since.

Another friend was seriously injured ($1M+) in a car accident that took the life of her son. She is still recovering (physically & emotionally) 3 years later. They took the life insurance proceeds and established a scholarship fund in his memory.

Her son graduated from high school just 2 months before the accident.

People who say you should not buy life insurance on a child because there is no lost income to replace have never known anyone who has lost a child. The child may not have generated income, but the parents who were raising the child were. How much of THEIR income should be replaced to allow them time off to mourn the loss of their child?

Another excellent reason. Most people never have to go through this awful experience (I talked about it with a prospect yesterday and it was awful even discussing it) fortunately and do not understand how it can impact them.

Insurance on children would be a WL sale in almost every instance, me thinks. You're probably looking at a relatively low amount say less than 100K and surely no more than 250K, so affordability shouldn't be a big issue. Plus, you can sell it as building a permanent asset for the children. If you're selling term, then you might as well make it $1M cause it's so cheap at that age (plus part of you wants to make the sale worthwhile). Then you sort of feel like you're promising serious bankroll on a tragedy.

 

[James]

Worthwhile? I think the way you put things is a bit much sometimes. Children Ins is usually brought by Grandparents and they give the ownership to the Parent while they pay yearly premiums. Usuall amount would be 10-25 grand W/L, with provisions that at certain ages they can double or triple the amount of coverage if they desire so when the child grows into an adult.

I ususal offer this while selling MA's or Supplements if I see picts of grandchildren or they speak of grandchildren, its a service. I use one company that pays 20 dollars to me. The best I did was selling a MA then adding on 6 app's for her grandchildren that she gave to the parents as a gift. So I made an extra $120 on the sale, as I stated it is a service added on to build a good relationship. I'm still trying to get the Grandparent to buy a LTCi, so I see everything as a on going struggle to service my clients.

 

[MIBizInsurance]

"I see everything as a on going struggle to service my clients."

/smile

Have to remember that one!

 

[James]

"I see everything as a on going struggle to service my clients."

/smile

Have to remember that one!

It's a struggle but I persevere somehow, with the help of the Almighty I shall succeed. Yet I think "Serve" would of been a better word?

 

[VIC]

ONE REASON IS THAT YOU CAN MAKE A LOT OF EASY $$$ SELLING IT AND IT IS AN EASY SALE.

 

[James]

ONE REASON IS THAT YOU CAN MAKE A LOT OF EASY $$$ SELLING IT AND IT IS AN EASY SALE.

I resent your comment of cheapening my service I provide to my clients as being motivated by money! :twisted:

Yet though I don't think there is much money selling insurance for kids.

 

[Sam]

I too, don't think that there is much money in selling on children, f it is done rarely, but you can easily make a couple of extra grand a year selling riders, if you do a lot of life.

 

[James]

I too, don't think that there is much money in selling on children, f it is done rarely, but you can easily make a couple of extra grand a year selling riders, if you do a lot of life.

One company I use a policy easy to sell to grandparents, it pays $20 per application, that is about the yearly premium. Small little W/L on their grandchildren they use as gifts for the parents of their grandchildren. While it is little I do it for a service, makes them feel good and is a cheap Xmas stocking stuffer. Yet I wouldn't market this but when out selling to seniors its just a add on suggestion.

 

[VIC]

$20 per submitt???????? How about $150 per app!! If you run 10 appntments 3 days a week 30 appointments- 5 sales 1.5 apps per house = about 7 sales per week. I did it for a while and it works!!! The down side is that is easy to get burnt out. The leads are easy to get, the appointments are easy to set. They do however canx alot or no show. If you have 10 appointments in 1 day it may take you 20 visits to all of the houses to get in to 7.

 

[James]

$20 per submitt???????? How about $150 per app!! If you run 10 appntments 3 days a week 30 appointments- 5 sales 1.5 apps per house = about 7 sales per week. I did it for a while and it works!!! The down side is that is easy to get burnt out. The leads are easy to get, the appointments are easy to set. They do however canx alot or no show. If you have 10 appointments in 1 day it may take you 20 visits to all of the houses to get in to 7.

I not going to sell Insurance for Children as my main product nor am I going to market it. Yet I will mention it if I see a need, I use a ultra cheap product that provides limited amount of DB, its dirt cheap and affordable for Grandparents to place and give away to the Parents.