Children’s Life Insurance. Keep It in Perspective!

Want to throw a wet towel on an adult conversation? Ask your friends how much life insurance they carry on their children. The normal answer would run the gammet from, “why would I do a thing like that” to “that’s not something I want to talk about”.

Just suppose for a moment that juvenile or children’s life insurance isn’t some morbid thought, but a potentially valuable gift to your child. OK, who said “life insurance can’t be a gift to my child because for the life insurance policy to do anything my child has to die and I don’t want to talk about it”?

Let’s just talk about adults for a minute. Hopefully we can all agree that life insurance has value in our adult lives. OK, I think I got about an 80% positive response to that. Now, if you could pay a very small amount of money to ensure, no matter what your young adult child’s health was, that they could get life insurance at affordable rates, would you agree that there might be some value in that? If your child developed some illness during their growing years it could probably be construed as a gift, couldn’t it? A prudent thing to do to make sure they can do the right adult thing at affordable prices?

All right then! Let me tell you how to accomplish that and then I’ll tell you how to answer that awkward question and sound like you are just, well, savvy.

The best policy out there that will guarantee that your child can buy $100,000 or more of insurance when they reach age 23 has a one time cost of just $250. You are purchasing something that gives them a guarantee as much as 23 years down the road that there is no other way for them to have guaranteed. The kicker is that it also includes a small amount of term insurance as they grow up. $5000 through age 13. $10,000 when they reach 13 through age 18 and $15,000 from age 18 to 23. This is no more than final expense or burial insurance. At age 23 they can do a conversion of that policy to a universal life policy of up to $100,000 in coverage WITH NO EVIDENCE OF INSURABILITY. All of that for a one time payment of $250? Yes!!

Now, when your friend asks you how much life insurance you carry on your children, tell them you bought a guaranteed insurability policy so that when your child grows up, they are going to be able to buy insurance no matter what there health is. If they really push on the children’s life insurance question, tell them that the guaranteed insurability policy has a small death benefit rider on it if, God forbid, anything should happen while they are growing up. Tell them you weren’t really interested in children’s insurance, but it just came with the package at no additional cost.

This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.