Mind saying what company the guy is with?

The paying them in 20 years probably is referring to the dividend being high enough to pay the premiums after 20 years. I doubt he is showing an actual 20-pay policy, so I don't like how he is selling that because the dividend isn't guaranteed. It would likely be able to pay for itself then, but not guaranteed. If it is a 20-pay policy, then never mind.

Definitely get the insurability rider, a lot of companies call it Additional Purchase Benefit. The cost will obviously be at that time, whatever a policy would cost at that age.

I like them as a nice gift for a child. They can help give them a good starting point financially for not a whole lot of money, but by no means is this the only option to do something like that.

This post was edited on 1/28/15 at 11:15 am

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Posted by ThatsAFactJack

East Coast

Member since Sep 2012

1552 posts

Posted on 1/28/15 at 11:21 am to GoCrazyAuburn

I bought a 75k whole life insurance policy for my daughter when she was born. I went with Northwestern Mutual. The premiums are approx 32/month. It has the guaranteed insurability rider and all dividends are used to purchase additional life insurance. After 5 years the death benefits is now approx $75,800 with a cash value of approx $650. I also started a 529 LA Start Savings plan and have additional savings set aside for wedding/etc. The life insurance policy is something to pass along to her when I feel it is appropriate.

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Posted by GoCrazyAuburn

Member since Feb 2010

34963 posts

Posted on 1/28/15 at 11:25 am to GoCrazyAuburn

Also, if you do end up getting them, get the Disability Waiver of Premium rider on them as well for a couple of reasons:

1. Yes a child can technically be declared disabled and the rider kicks in (I have seen it happen)
2. Generally, when they want to buy insurance later, if they want to add that benefit, it would require underwriting.
3. It is stupid cheap