Juvenile Whole Life Insurance
There are many reasons why juvenile whole life insurance is a good product for your clients. Obviously, no one will need to use juvenile whole life insurance as an income replacement tool. There are many other reason to purchase this product, as shown below. United American offers one of the best Juvenile whole life policies in the business. Rates, brochure and application are available at the bottom of this blog post.
Do you want to contract to sell this product? Send an email to Lisa@croweandassociates.com We will send you an electronic contracting link. Please let us know if you have sub agents that will be appointing as we have GA and MGA level contracts available
The First and Most Unlikely Reason is:
The death benefit. We are happy to report, in the United States, the infant and child mortality rate is very low. The rate is much lower now than it was in the 19th century when these types of policies were first started, so the poor could afford funeral and burial costs. At that time the child and infant mortality rate was much higher than today. These policies helped many families. However, in the unlikely event that a tragedy occurs, the death benefit is normally anywhere from $5,000 up to %50,000. The value of this policy is not based on this type of outcome.
The Second Reason is:
To guarantee future acceptance into an insurance plan. Unfortunately, there is a chance your child could develop a chronic illness later in his life and be denied life insurance coverage. While the chances that this will happen are slim, it is still a possibility. Cures for illnesses such as childhood cancer and diabetes seem to be slow to develop. based on future advances in medicine. If you have a family history of a terminal illness, this could also be a plan that can help give you some security. The insured can hold this policy into adulthood without consideration of the clients health. If you try to insure someone with a chronic illness later in life you will not have an easy time finding a plan and your budget might feel a strain.
Next, we will list some of the more positive reasons for your clients to invest in a Juvenile Whole Life Insurance Policy:
The Third Reason is:
And this is a good one, these policies have locked premium rates. This alone is a reason these policies can be a good idea to invest in. If this policy is kept in effect, your client will have a low fixed rate premium that is secure. If the policy is cancelled and the client wants to reinstate it the rate will change according to the clients current age and health factors. In some cases, as your child ages the death benefit increases. In fact, this will allow the policy holder to have the security of extra coverage; sometimes without a rise in premium cost.
The Forth Reason(this is am important one!) is:
One very useful benefit of juvenile whole life insurance policies is that the cash value continues to accumulate over the years. Some people will try to steer you away from these policies. Because these policies have fees, service charges and commissions, It will take some time for the cash value to grow. This statement is true, but if you are patient and continue to pay your premium you will receive the guaranteed benefit and a steady return rate. This fact can be comforting when you think about how unpredictable stocks are and the shrinking interest rates banks pay. These policies offer a rate return of between 3 and 5% over 20 years. This is a no risk investment!
Policy holders are permitted to take loans against the cash value of the policy anytime. This is a great perk. In addition, you do not need to report ownership of cash value life insurance policies if your client applies for financial aid while attending college. This means, if they fill out the current FASFA (Free Application for Federal Student Aid) this money will not be taken into account.
In fact, the cash value of the policy gives the child some money to use for the future. Parents or Grandparents can give this policy as a very useful gift. Many adults know financial security can make life less stressful and more secure. Giving a gift like this will both support and protect their loved ones in the future years to come.
The Final Reason:
These policies offer tax advantages to both the recipient and the person who pays the policy premium. All the returns from the juvenile whole life insurance policy are tax free to the beneficiary. The person or people who pay the premium can claim a substantial amount as a gift tax exclusion. The exact amount varies by year but it is a decent amount without any federal gift tax liability. substantial tax benefit when a parent or grandparent pays the premium. To sum up, this exclusion can basically pay for the policy cost for you.
This insurance is a good investment for clients that have a little extra cash and a child or grandchild that they would like to take care of. Look at the reasons we listed above and help your clients give a gift that can give them some security for future generations.