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re: Thoughts on whole life policies for children?
Posted on 2/15/17 at 3:11 pm to Keeble9145
Posted on 2/15/17 at 3:11 pm to Keeble9145
The UL can also function as a dialed in term hybrid. Either pay the minimum or pay the Guideline Annual Max.
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Posted on 2/15/17 at 3:12 pm to ForeverLSU02
Based on this, I wouldn't buy anything from her regardless.
Posted on 2/15/17 at 3:12 pm to Keeble9145
quote:I'm contributing much more than the minimum to build my cash value up. I'll probably cash it out in a few years and go with a large term policy
Be careful with that UL policy and make sure it is properly funded. ALOT of people get left hanging on those in their later years of life because they don't understand how they work. Every premium that you pay gets divided into three (montly cost, cost of insurance, and cash value) monthly cost and cash value stay the same. The cost of insurance on the other hand goes up continuously until it eventually starts eating away at the cash value and then will eventually run it to zero/cancel the policy. They will then give you an option to pay a ridiculous premium or let it cancel and you get zero in return. UL's are beneficial when its used as a cash dump for a business and you are able to properly fund it.
Posted on 2/15/17 at 3:13 pm to ell_13
quote:Yeah, that's why I'm starting to have second thoughts about this universal policy she talked me into years ago....
Based on this, I wouldn't buy anything from her regardless.
Posted on 2/15/17 at 3:14 pm to ForeverLSU02
Is there a premium load? If so, why wait to cash it out and go with term? The premium load could equal a chunk of your annual term cost.
Posted on 2/15/17 at 3:14 pm to ForeverLSU02
I worked for SF for 5 years before I went independent.
They 100% offer riders for children.
They 100% offer riders for children.
Posted on 2/15/17 at 3:15 pm to iknowmorethanyou
quote:The surrender charge should fall off in a year or two.
If so, why wait to cash it out and go with term?
ETA: what is a premium load? I'm not familiar with that term.
This post was edited on 2/15/17 at 3:17 pm
Posted on 2/15/17 at 3:16 pm to ForeverLSU02
quote:
I'm contributing much more than the minimum to build my cash value up. I'll probably cash it out in a few years and go with a large term policy
Pretty smart considering the high interest you are probably getting the low cost of insurance at the early stages. I wouldn't keep one for more than 10 yrs though if you are cashing it out.
Posted on 2/15/17 at 3:18 pm to ForeverLSU02
I'm 30. And through NW Mutual, I've got a $1m policy for me and a $250k policy for my wife for $57/month. Both term. I'm also covered through work. 6x salary for me (no charge on me) and $100k for my wife for $11/month and about $3/month for my son for $30k.
Posted on 2/15/17 at 3:27 pm to ell_13
quote:That doesn't seem bad. I'm 32 and SF quoted me $45/month for a $300k 20 year term policy.
And through NW Mutual, I've got a $1m policy for me and a $250k policy for my wife for $57/month. Both term.
Posted on 2/15/17 at 3:35 pm to ForeverLSU02
I have a policy for my 2 year old through state farm. His policy runs me less than $10 bucks a month and covers $20,000. My parents purchased several for me when I was a child and I am very grateful they did. I had an accident several years ago that required me to have major back surgery and while doing blood work for the surgery they discovered I had a blood clotting issue. When I shop for insurance now it is really expensive. However, the policies my parents bought can be increased with no blood work.
Posted on 2/15/17 at 3:41 pm to ForeverLSU02
I was 27 when we first got it so we locked in a good rate both getting excellent health scores.
Posted on 2/15/17 at 3:49 pm to DieSmilen
quote:
I had an accident several years ago that required me to have major back surgery and while doing blood work for the surgery they discovered I had a blood clotting issue. When I shop for insurance now it is really expensive. However, the policies my parents bought can be increased with no blood work.
And this is one of the main reasons why getting a policy for a kid is a good deal. If they ever become uninsurable or high risk because of health issues, the child can always fall back on the policy the parent purchased.
Posted on 2/15/17 at 3:51 pm to ForeverLSU02
we have those globe life policies we bought for each of the kids when they were born. 50K each. It's super cheap, I pay it once a year. If god forbid something where to happen to one of them, it would help us pay for a funeral and final expenses and counseling expenses for the rest of us, etc.
I'm not looking at it as some great investment or anything. When the kids move out on their own I'll probably transfer the ownership to them.
I'm not looking at it as some great investment or anything. When the kids move out on their own I'll probably transfer the ownership to them.
Posted on 2/15/17 at 4:02 pm to ThatsAFactJack
quote:
I bought an adjustable complife insurance policy for my daughter thru Northwestern Mutual when she was 6 months. $75,000 death benefit, dividends used to increase death benefit. 6 years in I have paid $2325.60 in premiums (32.30/month). It has a cash value of $1200 today and death benefits is up to $78,000. It was too cheap not to get for her. I will pay the premium forever and when she is older I will either cash in and give her the money or let her take over the policy. My grandparents did that for me and I got a check for roughly $16,000 when I turned 21.
The insurance seems anything but cheap, and what other investments have you compared this to? Over the long term you will probably achieve better performance investing the money in a index fund.
Posted on 2/15/17 at 4:05 pm to EA6B
quote:
EA6B
quote:
The insurance seems anything but cheap, and what other investments have you compared this to? Over the long term you will probably achieve better performance investing the money in a index fund.
I get your point. But my daughter was born 2 months premature and has health issues. This ensures that she will always have a life insurance policy should her health issues get worse with age. She is looking at having roughly $100k in life insurance by the time she is 18 and the premium is locked in at $32.30 a month. That benefit alone is worth not worrying about what I could have got investing in the market.
NM would not even write the policy till she hit the 6 month mark and reviewed all of her medical records.
This post was edited on 2/15/17 at 4:14 pm
Posted on 2/15/17 at 4:26 pm to ThatsAFactJack
The only benefit of the whole life is, as said, if they have some kind of medical condition they can usually increase it or have it for life.
You can literally get term life insurance until they are 18 for like $50,000 for a kid for like $1/ month. So anything over that you are paying for the "whole" part of the insurance for the extra "benefits" that offers.
You can literally get term life insurance until they are 18 for like $50,000 for a kid for like $1/ month. So anything over that you are paying for the "whole" part of the insurance for the extra "benefits" that offers.
Posted on 2/15/17 at 4:36 pm to ForeverLSU02
Tell her NO. It's a shitty product and it's completely unnecessary.
And your friend has boundary issues, I've been a broker for 14 years and I've never attempted to sell a policy to my friends or relatives unless they came to me and asked.
And your friend has boundary issues, I've been a broker for 14 years and I've never attempted to sell a policy to my friends or relatives unless they came to me and asked.
Posted on 2/15/17 at 5:04 pm to Vols&Shaft83
She's not really a friend of mine, but someone my parents have grown to know well over the years. But yeah, I get what you're saying. I most likely would have approached her soon about purchasing life insurance, but now I'm kind of turned off from her persistence, especially since I told her from the get go that I'd be in contact with her when I'm ready.
Posted on 2/15/17 at 5:06 pm to baldona
quote:and that would be the only reason I'd probably go with whole life. Yeah it builds a little cash value, but if I was interested in making an investment for him I'd take the premiums and go another route. The guarantee of insurability is the deal breaker here
The only benefit of the whole life is, as said, if they have some kind of medical condition they can usually increase it or have it for life.
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