In our first Life Insurance for Children article, we looked at the financial benefit of purchasing life insurance for youngsters. In this installment, I share my "Teaching Children About Life Insurance" speech, which I recite when the application is signed.
Infants usually sleep through it, but some do seem to enjoy it. Surprisingly, teens find it to be cool! And the adult family member who's sponsoring the plan really appreciates it.
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"Your parents (or grandparents) love you, and are preparing a tremendous gift for you. It is a life insurance policy.
"This gift is similar to many other money gifts that parents provide for their children, such as college funding, a government bond, or a stock fund. Yet, this life insurance policy could prove to be more valuable to you than all the other gifts combined!
"I know at your age it is hard to think in terms of insured and beneficiaries. So, let's look at this another way. Let's look at some of the most exciting parts of life, such as getting married."
"You find the person that's right for you, and you make a life together. You have a family. You want to provide everything for your family, and you never want them to lack for anything."
"You buy a house and take out a mortgage. That is your responsibility as the provider for your family. You would never want your family to be saddled with your payments."
"Perhaps you will build a business. A banker believes in you and wants to back your idea for making money. You qualify for a loan, and you make sure the bank will get repaid. You never want to burden your family with that debt."
"As life goes on, you will pick up responsibilities that will belong only to you. Life insurance will make sure that no matter what happens to you, the people you love and care for will not be burdened with your financial obligations.
"But, life insurance can be expensive as life goes on. The older you get, the more costly new policies become. Also, getting sick with common illnesses, such as diabetes, can drive up the price.
"The great news is that your parents (or grandparents) are helping you avoid these problems. Because your folks are giving you a life insurance policy today, you're locking in a low price that stays the same even as you get older.
"You can become a world traveler, or a soldier, or a world-champion bungee jumper! And that won't change the price. Even if you unfortunately become sick, that won't change the price."
"You can see that, throughout your lifetime, life insurance can be your pillar of financial strength.
"That is why many parents (or grandparents) choose to give life insurance to their little ones (even teenagers smile at this term of endearment!).
"And that is why you're being given this policy today." (This is the child's cue to thank the adult, which is usually done with wide eyes and a "wow.")
Next, let's look at the process of getting life insurance for children.
Copyright © 2001-2008 by Steven H. Kobrin, LUTCF. All rights reserved.
Steven H. Kobrin, LUTCF, is an independent life insurance broker and recognized expert in the field, serving as a preferred life insurance quote provider for many professional advisors and their clients, including attorneys, accountants, financial planners, and loan officers.
Experienced at patiently helping people through the life insurance maze, Steve is glad to share his perspective with the public and he warmly welcomes all emails and phone calls from consumers and consumer advocates.