One of the realities of the life insurance business is the many of the claims we pay are on policies purchased many decades ago, often when the insured was a young child. These are the policies that stay on the books for an entire life.

Why? There are several reasons.

First, a life insurance policy purchased on a child often has the lowest premium that person will ever have. In many cases, the policy is paid up before the insured inherits it, so they never have to pay any premiums out of pocket.

Second, the insured may not have had access to the policy until their parent passed away, so the opportunities to cash it in for some other purpose are reduced.

Third, when adults inherit ownership of these policies, they often have sentimental value, resulting in an enduring gift that lasts an entire lifetime. In our experience, people tend to keep that policy their parents and grandparents purchased, and as a result, at the end of the rainbow, it is the one the insurance companies are most likely to pay a claim on.

Here are some good reasons to purchase life insurance on your child or grandchild:

• Helps protect future insurability
  • Options to purchase additional life policies at specific ages can be guaranteed today
  • Option for conversion of a child term rider to an adult policy regardless of health
• A simple application process, most policies have no physical exam and few medical questions
• Lock in low premiums while the child is young and healthy
• Lifetime protection at the lowest cost
• Higher cash value growth, because of the time value of money
• College Funding - Cash values are not counted against the child when they apply for student loans and scholarships to pay for college!
• Asset protection -- Cash values and policy benefits may be exempt from creditors and predators (varies by state).

• Whole life
  • Rates never increase
  • Benefits never decrease
  • Builds cash value
• Universal Life
  • Flexible premiums
  • Adjustable benefits
  • Guaranteed minimum interest rate on cash values
  • Current interest on cash values declared by insurance company
• Index Universal Life
  • Flexible premiums
  • Adjustable benefits
  • Guaranteed minimum interest rate on cash values
  • Interest credits linked to an market index, like the S&P 500
• Child Term Rider
  • Additional protection added to a base policy on a parent

Available in face amounts as low as $5,000, with premiums starting under $2.36 per month

Would you like to learn more? Call today (800) 680-5596 or click This e-mail address is being protected from spambots. You need JavaScript enabled to view it .