Children are special… Life insurance is a special case in which children are considered to be unique. According to the new Mortality Tables, children are expected to live for many years (0-100+ year). Their life insurance rates are lower than those of an adult or teen, so they have a lower cost. After a child turns 14, they are automatically enrolled in a different pricing class. It’s logical. It’s normal.
After the milestone year, teens find their lives more difficult. The insurance industry no longer considers them cute and cuddly and they are therefore more expensive to insure than your toddler. Teens still receive a better rate than us.
To make this short story more interesting, let me give you the Merry Child Story as an example of the power youth has:
This is Merry Child. She is just 2 years old. Her parents want her to live a happy life and be able to care for herself when she is no longer with them. The Childs intend to retire in Venezuela. They have chosen to insure their little bundle of joy for 500,000.50 (the 50C/ was to keep Merry from having more insurance than Merry, but my illustration software round the 50C/ up at $1.00 so Merry has the same amount as her parents).
Because I am their agent and I did not receive the same financial opportunity from my parents as a toddling agent, it was suggested that they put their hard-earned Benjamins into a Flexible premium Universal Life Insurance Plan. Try saying it ten (10) more times! They will be charged a quarterly premium of $437.50, which is slightly less that 20 pounds of Starbucks(r), Black Apron Exclusive(r), Costa Rica Whole Bean Roast, La Candelilla Estate Coffee (r). Try it once!
Merry will be 18 years old and have a $20,710.00 college fund (or possibly $27,614.00 based on current interest rates) and a $500,001.00 death benefit. With a little help from Mom and Dad, Merry will be able to repay the loan that she borrowed from her Flexible premium Universal Life Insurance Plan after four (4) or five(5) years of higher education.
Merry, 33, has climbed a lot of ladders over the past ten years and is now ready to marry Joselph Manger. She has a cash value of $49,826.00 (possibly $90572.00 based on current interest rates) and a death benefit worth $500,000.00.
Merry and Joselph purchase a house and begin to build a family. They follow the example of Merry’s parents, The Childs. Their only child is… Merry turns 36 years old by the time Michael is a toddler. The cash value of her Flexible Premium Universal Life Insurance Plan cash is $56,647.00 to $101,159.00 (depending on current or guaranteed interest rates) and she has a lifetime death benefit of $500,000.00. She purchases a similar plan to protect Michael. (We won’t get into it.
The Child’s have chosen Life Settlement, seeing that Merry is now in the loving and safe hands of Joselph. They move to Venezuela by cashing in their $500,001.00 Flexible Universal Life Insurance Plan and paying $250,000.00. When converted to Venezuelan Bolivar (VEB), their $250,000.00 is $ 536,150,000.00. Despite their Espanol being not very good, they live happily everafter in Venezuelan luxury.
Another 29 years pass. Michael is now out of his house. The Mangers (Merry, Joselph) have decided to retire in La Jolla (pronounced La Hoya), California. Merry’s Flexible premium universal life insurance plan cash value is currently worth $73,862.00 to 575,836.00 and her death benefit $702,520.00. She is happy and decides to let it go for another 30 years. (Seeing Michael’s decision to become a Missionary and save the world single-handedly. You go, Michael!)
Merry, a 95-year-old widow and grandmother to 12 young missionaries, logs into the Virtual Reality Online Portal (previously known as the internet) to check the status her Flexible Premium Universal Life Insurance plan. Her death benefit is $2771,517 and her cash value is $2744,076.00
Merry, 100 years later, commends her spirit at Heavenly Father five years later. When she leaves her tax-free legacy of $3595,193.00 to her heirs, she becomes a guardian angel for her great grandchildren. Her La Jolla Estate is a Venezuelan villa and warehouse containing luxury automobiles.
Our little tale has a moral. GET A LIFE!! Get a life!