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Looking for life insurance coverage for son

Discussion in 'Parents of Children with Type 1' started by jet59or, May 16, 2009.

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  1. jet59or

    jet59or Approved members

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    Looking ahead, I know it will be difficult for my son to get life insurance when he most needs it - getting married, having kids, etc. So I wanted to try to get him a "whole" or "universal" policy so he'll always have something. My own agent, who has handled all of our insurance for over 10 years was on it - thought it was a great idea ... and then I NEVER heard back. I sent him a couple of emails, then gave up. I've contacted a couple of agents online, but would really like a recommendation of someone who handles this sort of thing. Jonathan is 17, so I know it's not going to be really cheap - but a good investment nonetheless. Thanks for any insight into this very real issue.
     
  2. Kalebsmom

    Kalebsmom Approved members

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    We happen to get our kids life insurance right before Kaleb's dx. I was told it was a good thing we did as it is nearly impossible to get him LI now.

    I am sure there is some way to get it, but I just do not know of it.

    Hopefully, someone will be of more help than I am.
     
  3. NicksMother

    NicksMother Approved members

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    I'm not sure if you would have better luck getting a term policy or not. Term insurance in the type of policy most financial planners recommend--not whole or universal.
     
  4. ecs1516

    ecs1516 Approved members

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    Dave Ramsey only recommends term. It would be more expensive than normal I would imagine.
    Also, if he can get life insurance thru his work that might help too in the future.
     
  5. NicksMother

    NicksMother Approved members

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    I lead the Dave Ramsey Financial Peace Course at my Church but I know that Susie Orman and others also recommond term insurance.

    Term insurance is generally cheaper then whole or universal life. In the long run, you are better off buying term insurance and investing the difference in cost in a mutual fund. Insurance should not be used as an investment.
     
  6. meg9901

    meg9901 Approved members

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    Life insurance for kids is a tough question. I see that your son is 17, so he's a young adult and that changes things a bit.
    I think that really the first thing to consider when purchasing a policy is what the goal may be.

    - For many adults, it's "income replacement", meaning that it is designed to provide a source of funds if you die and therefore your income goes away. Meant to protect dependents. Term insurance is great for this purpose.
    - For some, it's an investment, but there are pros and cons to using insurance as such. It very much depends on your situation. There are many very appropriate uses for permanent or whole life policies if the situation warrants it, and it's not a simple cut and dry explanation.
    - In some cases, insurance is designed to fund a specific expense or foundation or whatever in the event of death.
    - For children and people without dependents, the goal is often to preserve their future insurability. Meaning that if it is easier to get a policy as a child, especially there is no known medical condition, it can be a way of making sure that at least some coverage is in place that could be preserved for their future when they do have dependents. In many cases, there is no specific cause to insure children because they don't fall into any of these categories.

    I'm guessing for your son, it's the latter scenario. In which case, the question is how you can get the most reasonable rate, given D? Term may not be the way to go, because let's say you get him a 10 year term policy because of it's low(er) rate... In 10 years, his contract is complete, coverage is ended, and he has to shop for a new policy as an adult with D. Perhaps very challenging -- I haven't done it.

    I would contact an experienced insurance agent with access to multiple carriers and explain the circumstances and specifically what you are trying to accomplish. It could even be a combination of more than one type of policy, and an expert would know how to engineer this and what is possible. This may be more productive than an online search. In some cases at certain policy levels, there are non-medical applications which do not take medical conditions into consideration, especially for children. Chances are you can't escape the D factor in insurance, but it's something to ask about.

    Good luck! Let us know what you decide!!
     
  7. hypercarmona

    hypercarmona Approved members

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    We were able to get income protection on DH and myself a few years ago, but it costs WAY more for the two of us than if it were just DH by himself. The premium for me was based on my uneventful D history (no complications, no diabetes-related hospital visits the past five years, "good" A1cs, etc.), but was still much, much higher than if D were not a factor and all other variables were the same.

    But, even with the extra cost, we consider it to be a good investment for our boys.
     
  8. hawkeyegirl

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    I was told by our State Farm agent that if Jack needs life insurance someday, he will be able to get it if he has good a1Cs. He said that his cost will be somewhere in the middle of life insurance costs - not the cheapest, but not the most expensive either. Think 8 on a scale of 1 to 16.

    I don't see much point in getting a 17 year old life insurance now. I'd wait until he has a family to support.
     
  9. bgallini

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    This is pretty much what our State Farm agent told us. I was calling to ask about more coverage for dh and about coverage for our nonD son. I was thinking I'd get the nond son covered now so if he does get D later in life, he'd have coverage and not have to worry about it. But the State Farm guy (and the Edward Jones guy) said that Alex should be able to get coverage when he's older, with a family (and needs it). It will be more expensive and they will look at a1cs and such. So we didn't get any for our nonD son. The Edward Jones guy also pointed out that Alex could invest money rather than get life insurance if he wants to have money for his family.
     
  10. sam1nat2

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    Dave Ramsey and Suze Orman have their own agenda's--sorry to fans of theirs. I think that they have good advice, but I woldn't trust their advice on insurance for a moment. Suze endorses a horrible company, a company with awful outside ratings and bad claims payment history.

    I'm a licensed insurance agent, however I do not specialize in life. I recommend you finding a good life insurance broker vs someone who just works for one company. Many of these brokers are also securities licensed, which is good in that they can advise you well. Make sure they are licensed, get recommendations and call the people, google and facebook them too!! Turst me, there are way too many people out there that sell scams, but there are good people too.

    If you can get him a good whole life policy now then go for it!!! Even though Dave and Suze don't recommend them, any seasoned financial advisor will as you can use the policy as an investment--ie college tuition, mortgage for your ds, college for his kids, etc.

    My experience is that anyone who tells you that you only need x amount of dollars or just need term has their own agenda---often they are trying to get you to buy some other product they are selling.
     
  11. CrystalK

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    Sorry for calling you out but this post jumped out at me. My husband's sister died in a car crash at age 17. The funeral costs were around $7000-8000. His parents had to go into debt to pay for her funeral because they did not have life insurance on her.

    Unfortunately, tragedies happen. We got $10,000 policies on both of our girls shortly after they were each born just for this reason.
     
  12. tanyakennedy2010

    tanyakennedy2010 New Member

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    Hi my name is tanya and i am new to this forum. I have been reading this thread for the last 10 minutes and I have heard every one talking about term is better and sussie orman and dave ramsey. Since I am a licensed professional I can tell you that there are more than one school of thought on the matter. There are 2 books by a guy names Patrick Kelly. Patrick explains universal life insurance and breaks it down so that any one can understand it. I recomend both of these book, Tax free retirement and the retirement miracle. Your son is 17 and has and with a preexsisting condition it is hard to get insurnace for him. I think you have the right Idea about a universal life product, If you can afford one. It is not always about can I bury this person, he is still young. and is he going to be gone in 30 years, and is a mutual fund going to give him the type of income he would want when he was ready to not be working any more in todays economy. I am not trying to sell you anything that was not my reason for responding to your post. My reason was this, I do this every day and I wanted to make sure that some one from the actual industry we are talking about was the one that gives you the advice. sussie orman and dave ramsey do not work with insurance. An agent most of the time is the one that can give you credible advice about the products with out any trouble. With that being said I am a brokker and I do not represent any one company. am gonna call around and see who will take a 17 year old kid with diabeates and then I will contact you back on this forum. I will give you the information onn who to call in your area so that you can get te help that you need. Good bless you Evangelist Kennedy
     
  13. hawkeyegirl

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    Well, yes. If you can't afford funeral expenses for your child, that reasoning would apply. That was not the OP's situation, however.

    I think it will be easier to obtain LI for T1s as time goes on. A recent study came out showing that the gap in life expectance between T1s and non-Ds is shrinking rapidly. As the actuarial tables catch up to that data, LI for T1s will get cheaper.
     
  14. jet59or

    jet59or Approved members

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    Thanks Tanya and everyone who has replied. Our son is now 19 and our new agent has done some research for us. I'm pretty sure it will be universal but not positive (we discussed it abt a year ago). But what he did say is wait until he is 20. For some reason rates go down then. Maybe because there is history abt how he takes care of himself as an adult? So we will revisit this fall.
     
  15. kimmcannally

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    Also possibly just because he is less likely to die in an automobile crash than a teenager.
     
  16. FinancialKing

    FinancialKing New Member

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    Buy term invest the difference.

    With him being under 18 the best way to do it is to add your son as a rider on a policy for yourself then convert him to his own policy when he reaches between 18-24. But stay away from any cash value policies because cash value isn't the good choice. Buy term invest the difference just like Dave Ramsey, Susan Orman and all the other experts say. If you have any other questions let me know I'll try to answer them or find the answer for you. That's what I do is sell life insurance for a living so I can most likely give the answer to most questions.
     
  17. obtainedmist

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    Interesting thread...we've never thought of this.
     
  18. cockatiel

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    Has anyone been able to get life insurance for a person with type 1 diabetes?

    It would be good to hear a success story and how it happened!
     
  19. kimmcannally

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    I know we tried after J was diagnosed with two different companies, but both of them had forms that made it clear they would not cover a person with diabetes who takes insulin.
     
  20. Melissata

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    My son was able to buy it because of his job. You almost always need a group policy like this.
     
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