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We have a 22 year old son who is a senior engineering student in college. We have had him on a life insurance policy as a rider since he was a baby. Recentley the agent has been calling us and bugging us about buying him a conversion policy,as his coverage on our policy will be ending in December. I told the agent that he will be graduating in April and is an adult and that is his decision to make. The agent came right out and told me that I am under a moral obligation as a parent to buy him the conversion policy, at which point I got a little hot, and told him that I also realize that it is how job to sell policies, and that I could not believe that he told me I am under moral obligation as a parent to buy conversion insurance for my ADULT child, needless to say he was not happy with my response and the call ended. My son is healthy and thier will only be a mater of about four months until he graduates and should be able to purchase a policy on his own. The agent wanted to sell us a policy for $27 per month for 15k worth of coverage. Any thoughts?
Your kid is an engineering student, which means he's almost an engineer, which means he's probably going to have job offers before he even graduates, jobs with decent pay and benefits. Good job mom/dad!
If you have any reason to be concerned, then maybe, but if not, move on and get ready for the graduation party.
Moral, no, responsible, possibly. The benefit of buying life insurance on kids is if something happens to them or you that makes them uninsurable as adults, you have seen to it that they have some coverage and can usually buy more as they age without medical questions. It's money if you need it for a funeral but the real reason to buy it is so they can have it as an adult.
Should you buy a conversion policy, maybe but probably not. Chances are he can get a much better policy elsewhere for the same or less. Given that his coverage is a "rider" on your policy, I'm guessing it's not a top rated company the policy is with.
$27 for $15 sounds high for a healthy young person.
I do know one thing....if an agent pulled a morality tactic on me, it would not be that agent I would do business with.
we can insure for everything in life . the question is where do you draw the line.
personally i feel gambling with the fact you may not be insurable later on in life when you are now a child is a risk most of us will not want to waste money on covering unless we have reason and or we have free cash to do so. .
with most families they end up having to decide what insurance to take and what carrys risks so small they will not take it as they can not afford all this insurance..
my opinion is folks are better served with disability insurance , better liability insurance , flood insurance and better health coverage before they consider life insurance on a child .
other than speculating on not being insurable later on the child has nothing to insure against other than burial costs.. for education 529 plans are much more effective if the money is to be used for education later on.
if you are doing it for potential health reasons you will need to buy at least a million bucks of insurance to make it worth doing at all in my opinion.
to bad the average policy a child has is only 5k.
the odds of a child being uninsurable later on is microscopic according to industry statistics.
Last edited by mathjak107; 09-25-2013 at 03:59 AM..
we can insure for everything in life . the question is where do you draw the line.
personally i feel gambling with the fact you may not be insurable later on in life when you are now a child is a risk most of us will not want to waste money on covering unless we have reason and or we have free cash to do so. .
with most families they end up having to decide what insurance to take and what carrys risks so small they will not take it as they can not afford all this insurance..
my opinion is folks are better served with disability insurance , better liability insurance , flood insurance and better health coverage before they consider life insurance on a child .
other than speculating on not being insurable later on the child has nothing to insure against other than burial costs.. for education 529 plans are much more effective if the money is to be used for education later on.
if you are doing it for potential health reasons you will need to buy at least a million bucks of insurance to make it worth doing at all in my opinion.
to bad the average policy a child has is only 5k.
the odds of a child being uninsurable later on is microscopic according to industry statistics.
We have all of those...and the $8/month we pay that will allow our kids to have over $2,000,000 in coverage down the road is worth not stopping at Starbucks a few times/month They have $50,000 in coverage now with the option to add more that could end up in the $2,000,000 range at age 40. Yes, I realize that when they are 40 that isn't as much as it is now, but it's still better than nothing....and "gasp" it's WHOLE LIFE insurance.....
Thanks for all the replies. Yes, he will hopefully have an engineering job come spring, but with this economy, who knows? I guess we always thought in terms of life insurance on a child in terms of funeral expenses if God forbid, something should happen. Like I told the agent, seeing that he is a healthy 22 year old, I feel it is his choice what he does once he makes his own money. It will only be four month from the disconnection of one policy until he should be able to pick out his own. This agent that talked this way was with Baltimore Life, and I do get a little hot under he collar when I feel anybody is trying to pressure me into anything, but to give me the I am a bad parent rap because I should I should feel morally obligated? Our son has been a joy to raise, and we are very proud of him, we have helped him out throughout the last four years, one and a half of my paychecks go for parent loans to help him through, but as I write this my blood still boils at the attitude of the agent
and $27 does sound a little on the high side for $15k worth of coverage. Thanks for listening to me vent.
We are not a co signer on his loans, and I have always told him it is important to have these insurances, more so disability, and to get them while he is young and with no health issues at a good rate. Like I said before, it's not that I don't believe in having them, it's the idea of being told that I am morally obligated to purchase them for my ADULT child. And I believe it is also best to shop around without jumping into anything, we have also tried to install this concept into our son.
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They have $50,000 in coverage now with the option to add more that could end up in the $2,000,000 range at age 40. Yes, I realize that when they are 40 that isn't as much as it is now, but it's still better than nothing....and "gasp" it's WHOLE LIFE insurance.....
