Life Insurance: OPINION

"I know the agents try to tell you they might not be able to get insurance if they get sick but what are the real odds of that? If they did get sick, how far would 50k insurance payout go for their dependents anyway? Would the be able to add more coverage if they were sick? It is a high price to pay to "guarantee" insurability for a kid! Terry December 27 2009 9:56

Here is the opinion about what Terry wrote above from Stefan: Which one do you agree???

" I know it's an old comment, but I couldn't let it pass. My Aunt became uninsurable with Diabetes at age 14. My (non-blood related) nephew was uninsurable at 6 months due to a congenital heart disorder. My Wife became uninsurable with a chronic back disorder at 27. I know of another friend's child that isuninsurable due to a car accident that caused brain trauma - she is otherwise functional, but has occasional seizures; no onee will insure her. It is against these very things that we buy insurance in the first place! I bought a permanent Indexed Universal (probably the best permanent type of policy on the market as far as value for your dollar) policy my children (ages 7 and 1) with a $155k DB each. The most important part of the policy, was that I put a Guaranteed Insurability rider on the policies that allows them to purchase $50k of additional insurance every three years starting at age 22. Why? because I love my unborn grandchildren, and I love my sons' wives, and I want to make sure that they are taken care of even if my son(s) become uninsurable! When I bought it I wrote a letter out to my children and stuck it in the policies with instructions on how to use the policies. If the fairly conservative projections hold up, they should each have around $32,000 in cash value around age 30 - not bad for a total investment of $17,000 over 24 years(on the 7 year old)while still providing a guarantee should any chronic disease or accident happen. If they are still healthy, I instructed them to cash out the policies when they are at about a $1 to 3 ratio, because they can probably get more insurance for similar cost. Hopefully I will be providing them with a downpayment on a home or business. For $100 a month -which is adjustable up or down -, to offer all of that, plus the peace of mind that comes with it, I say is FAR worth it, and a better ROI than just money.
Stefan February 10 2011 10:15 AM

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