What is the Best Children's Life Insurance Product?

Jun 3, 2013

  1. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    So neither does both is what your telling me.

    Yes MM is Mass Mutual. ON is Ohio National.

    So you are saying that it is guaranteed paid up at year 20 but reduces to $50K?
    Why would you want a lower DB 20 years out when inflation has made the DB worth half of what it originally was?

    Usually a child needs a smaller policy that can grow with them.
    Most parents would agree that it is best to start with the $50k and have it grow to $75k.
    This is what the options I mentioned do.


    Mass Mutual is $30/m for $50k on a 5 year old girl.
    In year 30 it reaches $75k.
    It gives the option to purchase $125k more in DB at certain policy anniversary dates with no questions asked.

    You can also choose to offset the premium (reduce the premium) using dividends and the premiums will be offset around year 30. (the DB still rises with this option too, just not as fast)

    If you just need $75k for a kid, then it would be about $10 more without the GIO rider.
    But at year 20, instead of reducing to $50k. It has increased to over $80k.

    It sounds like Columbian has competitive rates.
    But I stand by the statement that MM has a more competitive policy, and is a much more solid company judging by financials.
     
    Last edited: Jun 4, 2013
  2. deadhead
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    deadhead Guru

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    Hmmm. Sounds good. Need to get contracted with MM and switch granddaughter. Who on here can I go through to get MM? My budget per grandchild is around 25$. With seven kids no telling how many grandkids I will end up with. Just noticed the yr 30 payup. What does it do for a 20 pay?
     
    Last edited: Jun 4, 2013
  3. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    You could get $50k without the $125k GIO Rider for $25/m.
    But I would probably drop it to $40k and include the GIO Rider if I were you. If it is needed, it is more valuable than the $50k DB.


    You usually have to contract through a regional office. A few IMOs might offer them, but the best thing to do would be to go to the closest regional field office and ask for an indy contract.

    ON is higher than MM for a 5yo. And their GIO rider only goes up to whatever the base DB is. So on a $50k policy the max GIO is $50k. Mass will go over face, this is a big reason I like MM for kid policies.
     
    Last edited: Jun 4, 2013
  4. deadhead
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    What is the underwriting like for mm?
     
  5. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    It is fair. Not too strict but certainly not loose. For kids it is usually very quick unless they have health issues.

    If I had to guess I would say it is a bit more strict than CL.
    I only have experience with CLs graded products so I have no first hand experience with their underwriting.

    Whats funny is that the CL regional rep has been to our office a few different times & if he ever mentioned anything other than graded products I sure dont remember... lol.
     
  6. Todd King
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    Todd King IMO/FMO Owner

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    Actually, RNA's Essential is par WL, they just don't PARticipate in paying dividends! :twitchy:
     
  7. Sara Rostami
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    Sara Rostami New Member

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    For getting life insurance on a child I would recommend getting it at increasing and a permanent policy. Some companies come with full Living Benefits, which is wonderful. With Certain companies you can get a loan or withdraw from you cash value to help pay for college. As you know the cost of insurance is significantly lower for a child than an adult so you can overfund the policy up to a certain annual amount. I am not aware of any ROP products out there so I cannot give my two sense about that.

    I hope you find what your are looking for.
     
  8. pfg1
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    pfg1 Guru

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    The CV on most child policies typically isn't nearly enough to use to help fund college unfortunately. I do have some clients that their child policies do have enough, but for most people the policies are small and even if max overfunded the the CV is small as well.
     
    pfg1, Dec 21, 2018
    #18
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