{"id":4675,"date":"2018-05-08T09:39:46","date_gmt":"2018-05-08T14:39:46","guid":{"rendered":"https:\/\/www.figmarketing.com\/blog\/?p=4675"},"modified":"2023-09-06T11:32:51","modified_gmt":"2023-09-06T16:32:51","slug":"insuring-uninsurable-minors","status":"publish","type":"post","link":"https:\/\/www.figmarketing.com\/blog\/insuring-uninsurable-minors\/","title":{"rendered":"Insuring Uninsurable Minors"},"content":{"rendered":"<p><em>Updated September 6, 2023, at 10:59 AM<\/em><\/p>\n<p>You may know there are several guaranteed issue life programs for adults, with many unavailable until over age 40. This leaves a gaping hole in our industry for parents of special needs or uninsurable children.<\/p>\n<p>From a planning perspective, many families in this situation could vastly benefit by implementing a Special Needs Trust for long-term care planning for their loved one once they\u2019re no longer here to care for their child by themselves. This type of planning can be very specialized and creative when done by an experienced attorney in this area. However, what about insuring the actual life of that child?<!--more--><\/p>\n<p>With guaranteed issue almost non-existent under age 40, there aren\u2019t many solutions to fill this gap. At the unexpected end-of-life for a special needs or sick child, there could potentially be large amounts of medical bills, expenses, and unforeseen debt that could arise \u2013 leaving the parents or guardians at an increased risk for financial downfall. Therefore, extra consideration should be taken to insure the lives of those parents or guardians and the uninsurable child.<\/p>\n<h2>The Scenario<\/h2>\n<p>Dad, James, age 51, and mom, Jill, age 48, are the loving parents to Johnny, 12-year-old special needs son \u2013 causing him to be uninsurable for individual or child rider life insurance coverage. They\u2019ve tried to obtain coverage for Johnny but were turned down multiple times as nearly all child riders in our industry involve some form of underwriting.<\/p>\n<h2>The Solution<\/h2>\n<p>Insure the lives of the parents and include a <strong>non-underwritten child rider with a future conversion option to triple the rider coverage!<\/strong> Here\u2019s how that works:<\/p>\n<ul>\n<li>Dad buys a $200,000 20-year term life insurance policy on himself, with a $25,000 child rider on Johnny, making the total monthly premium $56.02 (preferred non-tobacco rates).<\/li>\n<li>Mom buys a $200,000 20-year term life insurance policy on herself, also with a $25,000 child rider on Johnny, making that total monthly premium $39.00 (preferred non-tobacco rates).<\/li>\n<\/ul>\n<h2>The Result<\/h2>\n<p>For less than $100 per month, the parents have covered Johnny from age 12 to 25 with $50,000 of life insurance; not to mention $400,000 in coverage on themselves for family protection! They\u2019ve also set Johnny up for future insurability via the option to convert.<\/p>\n<p>At age 25 (the 13<sup>th<\/sup> year of the term policy) Johnny can convert up to three times the amount on EACH child rider:<\/p>\n<p><em>$25,000 x 3 = $75,000 individual permanent coverage (from mom\u2019s term)<br \/><\/em><em>+<br \/><\/em><em>$25,000 x 3 = $75,000 individual permanent coverage (from dad\u2019s term)<br \/><\/em>===========================================================<br \/><strong>$150,000 permanent coverage on Johnny\u2019s life without going through any underwriting!<\/strong><\/p>\n<p>This solution could be incredibly impactful in a positive way for a family who is at a higher risk for unforeseen or premature loss of a child. Also, in the event mom or dad were to pass away prior to Johnny\u2019s 25<sup>th<\/sup> birthday, the rider may be converted at their death.<\/p>\n<hr \/>\n<p>\u00a0<\/p>\n\n\n<figure class=\"wp-block-image size-large is-resized is-style-rounded\"><a href=\"https:\/\/engage.figmarketing.com\/acton\/fs\/blocks\/showLandingPage\/a\/39120\/p\/p-0140\/t\/page\/fm\/0\" target=\"_blank\" rel=\"noopener noreferrer\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2022\/09\/FIG-LP-LifeInsAsRetirement-09.01.22-CTA-BL-1024x366.png\" alt=\"\" class=\"wp-image-11576\" width=\"512\" height=\"183\" srcset=\"https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2022\/09\/FIG-LP-LifeInsAsRetirement-09.01.22-CTA-BL-1024x366.png 1024w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2022\/09\/FIG-LP-LifeInsAsRetirement-09.01.22-CTA-BL-300x107.png 300w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2022\/09\/FIG-LP-LifeInsAsRetirement-09.01.22-CTA-BL-768x275.png 768w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2022\/09\/FIG-LP-LifeInsAsRetirement-09.01.22-CTA-BL-1170x418.png 1170w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2022\/09\/FIG-LP-LifeInsAsRetirement-09.01.22-CTA-BL-585x209.png 585w, https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2022\/09\/FIG-LP-LifeInsAsRetirement-09.01.22-CTA-BL.png 1398w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/a><\/figure>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.figmarketing.com\/#!\/Landing\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" width=\"150\" height=\"152\" src=\"https:\/\/www.figmarketing.com\/blog\/wp-content\/uploads\/2021\/02\/FIG-Logo-Red-Triangle.png\" alt=\"financial independence group logo\" class=\"wp-image-8736\"\/><\/a><\/figure><\/div>\n\n\n\n<p class=\"has-text-align-center\" style=\"font-size:10px\"><em>For financial professional use only. This is the opinion of its author and not that of any other entity. This is not tax or legal advice and is not an endorsement of any company or product. Insurance product guarantees are based upon the claims paying ability of the issuing insurance company. Values expressed within this article are illustrative in nature and are for educational purposes only. Actual results will vary based on underwriting results and the specific product selected.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Updated September 6, 2023, at 10:59 AM You may know there are several guaranteed issue life programs for adults, with many unavailable until over age 40. This leaves a gaping hole in&hellip;<\/p>\n","protected":false},"author":63,"featured_media":4676,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[362],"tags":[108,335],"acf":[],"_links":{"self":[{"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/posts\/4675"}],"collection":[{"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/comments?post=4675"}],"version-history":[{"count":11,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/posts\/4675\/revisions"}],"predecessor-version":[{"id":12859,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/posts\/4675\/revisions\/12859"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/media\/4676"}],"wp:attachment":[{"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/media?parent=4675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/categories?post=4675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.figmarketing.com\/blog\/wp-json\/wp\/v2\/tags?post=4675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}