There are several good opportunities throughout the year to talk with your clients about the benefits of juvenile whole life insurance policies, and summer is one of them, considering about 81 percent of grandparents will have their grandchildren visit during these months. But you should consider selling child life insurance during one of these moments, too:
- Annual policy reviews
- Births of new children and grandchildren
- Birthdays of children and grandchildren
- Before going back to school
Selling Child Life Insurance: How It Benefits Your Clients?
Juvenile whole life insurance is permanent insurance that is purchased by parents or grandparents on the life of a child under 18. Before selling life insurance on kids, you should know that these policies have lower face amounts (typically between $5,000 to $50,000). These policies come with:
- a guaranteed premium that can never increase.
- a guaranteed cash value growth that can be accessed in the future.
- a guaranteed death benefit.
The market for grandparents purchasing juvenile whole life insurance policies continues to grow each year. Grandparents make up approximately one-third of the United States’ population, and it is estimated that 1.7 million people become grandparents each year. This demographic controls 75 percent of the wealth in the United States and spends $52 billion a year on their grandkids.
Why You Should Be Selling Life Insurance on Kids
Instead of spending money on ice cream and toys, grandparents and parents should consider purchasing a juvenile whole life insurance policy. Here are four reasons to share with your clients.
- Lock in low rates. Juvenile whole life insurance is inexpensive compared to policies purchased later in life. By purchasing the policy when the child is young, it will lock in a low rate that is guaranteed to never increase throughout the life of the policy.
- Leverage time. Over the course of time, juvenile whole life policies can build cash value that can be accessed through withdrawals and policy loans. This cash value could be used for a down payment on a house, a wedding, or for future premiums. It is beneficial to purchase these policies early so the cash value has time to build for future uses.
- Teach financial responsibility. It is never too early to talk to children about financial responsibility. Selling juvenile whole life insurance can lead to discussions about the benefits of protecting against risks that might impact their financial future.
- Protect insurability. No one likes to talk about the thought of a child’s death. But purchasing a juvenile policy while the child is young and healthy ensures that the child will have coverage later in life—regardless of health status.
What to Ask Carriers When Selling Child Life Insurance
There are several aspects to consider when selecting a carrier to write juvenile whole life insurance policy through. Before committing, here are some questions to ask:
- Is the policy participating or nonparticipating?
- Does the carrier allow the grandparent to be the owner?
- How much life insurance do the parents need to own?
- What is the minimum face amount?
- Are there riders available to enhance the policy?
- What is the underwriting process?
Be Prepared With Excelsior
With a comprehensive line of products, Excelsior can help you navigate selling child life insurance. Each carrier is carefully vetted, leaving you time to focus on what’s important—your clients. Contact us, and find out what Excelsior can do for your business.