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re: Newborn life insurance
Posted on 5/3/19 at 9:44 am to Thib-a-doe Tiger
Posted on 5/3/19 at 9:44 am to Thib-a-doe Tiger
You're assuming he doesn't throw a fit when his wife gets a coffee.
1
Posted on 5/3/19 at 10:22 am to iknowmorethanyou
Posted on 5/3/19 at 12:27 pm to TigerTatorTots
WoodmenLife
Posted on 5/3/19 at 7:05 pm to TigerTatorTots
Shake off all the haters. Despite what's said here, there's several reasons to buy life insurance for a child.
The main value is actually income replacement. If you think the parents just pick a casket, write a check and move on, you are terribly wrong. A very high percentage of parents are not immediately back to work. Then theres other expenses to consider and impact on long term goals.
Bottom line is there's definitely a risk there you can choose to transfer for very little cost
The main value is actually income replacement. If you think the parents just pick a casket, write a check and move on, you are terribly wrong. A very high percentage of parents are not immediately back to work. Then theres other expenses to consider and impact on long term goals.
Bottom line is there's definitely a risk there you can choose to transfer for very little cost
Posted on 5/3/19 at 8:57 pm to baldona
quote:
Again, we are talking about one simple type of insurance. If its a good deal to you then by all means keep it.
On a percentage its simply not a good deal. $4 for $15-25k of term insurance would be $80 for $500k of term insurance. That's very very expensive. Who has a greater chance of death in under 20 years a baby or kid or a grown 30 year old? I honestly don't know but I'd bet the 30 year old.
You aren't comprehending the statistics very well.
Only 3% of term policies payout.
A permanent policy is 100% guaranteed to payout.
You can claim the term is a better deal. But there is a 97% probability that you are pissing 100% of that money away.
Anyone with facts can make the statistics sing whatever they want them to sing. But your argument was flawed.
Posted on 5/5/19 at 12:50 am to meansonny
quote:
Only 3% of term policies payout. A permanent policy is 100% guaranteed to payout. You can claim the term is a better deal. But there is a 97% probability that you are pissing 100% of that money away. Anyone with facts can make the statistics sing whatever they want them to sing. But your argument was flawed.
Only 3% of term policies pay out because most people buy 20-30 year term for the period of there life when they need insurance. Usually when they are relatively young, and fortunately most people don't die during that period, which is why term is cheap. It is a ridiculous comparison.
You are forgetting a statistic, 25% of permanent policies are canceled in the first 3 years, and 50% in the first 10 years. With surrender penalties enough money to have bought a ton of term is just pissed away.
This post was edited on 5/5/19 at 1:06 am
Posted on 5/5/19 at 10:29 pm to EA6B
Has anyone mentioned that some newborn policies allow for auto additions with no underwriting at certain ages for the child? If the child develops a condition that would cause it to be uninsurable, they can still have life insurance to protect their family when they are an adult. Could be quite beneficial. 
Posted on 5/6/19 at 1:24 am to BBONDS25
quote:
Has anyone mentioned that some newborn policies allow for auto additions with no underwriting at certain ages for the child? If the child develops a condition that would cause it to be uninsurable, they can still have life insurance to protect their family when they are an adult. Could be quite benefi
I can see that as being a positive aspect. I am not anti permanent life insurance, it is a useful product in the right situation. But the common sales pitch about only 3% of term policies ever paying out so you pissed away your premium payments is just laughable. Being able to protect your families financial well being at a very reasonable cost for 20 or 30 years, and not actually dying during that time period is the ideal outcome.
Posted on 5/6/19 at 10:19 pm to EA6B
quote:
But the common sales pitch about only 3% of term policies ever paying out so you pissed away your premium payments is just laughable
I was just debunking the "value" argument in term over permanent. It is a perceived value.
Try quoting out a term policy to age 80 and remember that only 3% payout. That perceived value disappears even on term insurance pretty quick when covering at advanced ages like a permanent policy (and compound that term notion on coverage from age 25-80... 55 years paid into a policy that provides a 97% chance of doing nothing ).
I've got no beef with term insurance. But it is careless to say that it is a much better value than permanent without putting the simplest of thoughts into it.
Posted on 5/6/19 at 10:22 pm to BBONDS25
quote:
Has anyone mentioned that some newborn policies allow for auto additions with no underwriting at certain ages for the child? If the child develops a condition that would cause it to be uninsurable, they can still have life insurance to protect their family when they are an adult. Could be quite beneficial.
I don't have kiddie policies. But if I did, this would be 100% the reason why.
My brother has a 300k mortgage and 10 year old daughter, and he can't get life insurance.
Having a $25k policy with the opportunity to buy $25k more every 3 years would put his family in a much better place as a sole bread winner.
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