Whole Life for Children
- Thread starter jswjr
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- whole life
We like United of Omaha, RNA, and Settlers depending on how you want to structure it. It's hard to be UoO.
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- 11,273
WL for children is based on standard, smoking rates. That's just the way it is.
But if you're stuck on price, then you're missing out on GIO potential. (I think it's GIO.)
I remember that MassMutual's WL offers GIO rider where at specific ages, you can add an additional $100,000 of coverage at different ages without providing proof of insurability. I believe the last time this subject came up, MassMutual had the "best WL" for children.
So, when you're looking at WL plans with different carriers, be sure to check out guaranteed increase options (GIO) for the different policies.
But if you're stuck on price, then you're missing out on GIO potential. (I think it's GIO.)
I remember that MassMutual's WL offers GIO rider where at specific ages, you can add an additional $100,000 of coverage at different ages without providing proof of insurability. I believe the last time this subject came up, MassMutual had the "best WL" for children.
So, when you're looking at WL plans with different carriers, be sure to check out guaranteed increase options (GIO) for the different policies.
- 709
Gerbers, Gerbers, Gerbers. I am not appointed to them. Why get a large amount of insurance on children. Take the premium and add more insurance on the parents.
- 24,940
Why not? If a client calls me to write $100,000 or $250,000 20 pay on a child I will gladly write it.
- 11,273
First, we only have the OP's question to work with. So we answer that question. Your question goes deeper to ensure that the recommendation is appropriate. That's good too.
Why buy insurance on children (after client's parents insurance needs are met)?
1. Uninterrupted compound interest through their lifetime.
2. Source of financing for college, weddings, 1st home purchase, etc.
3. Guarantee some insurance in the event of poor health.
4. Guaranteed Increase Option to buy more guaranteed without providing evidence of insurability - depending on company and policy purchased
5. Does not count against the child or the parent for college financial aid.
6. Opportunity to teach your children about the importance of long-term saving, especially when you transfer the policy ownership to your children.
7. In the event that children pass, you can afford to take time away from work.
8. Critical illness living benefit rider (children can get cancer, but check on individual policy provisions on this as there may be an age restriction; I doubt you could get an ABR on a child rider on the parent's policy.)
That's all I've got... for now.
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