The backpacks are packed. School supplies are purchased. Calendars are filling up again.
Back-to-school season is all about preparation.
Parents and grandparents spend plenty of time making sure children have what they need for the year ahead, from new shoes and school supplies to schedules, activities and everything in between. But as families check items off their back-to-school lists, there may be one more conversation worth having: Are they also preparing for their child’s financial future?
August can be a natural time to introduce that conversation.
Add One More Item to the Back-to-School List
As families settle into a new school year, take a look at the clients you already serve. Are there parents or grandparents who haven’t considered life insurance coverage for the children in their lives?
Juvenile permanent life insurance can be part of a family’s broader protection and financial strategy. In addition to providing a life insurance benefit, a permanent policy has the potential to accumulate cash value over time that may be available to help with future needs, including education expenses.
For a young child, time can be a powerful advantage. A policy established today has years to potentially accumulate value as the child moves from elementary school to high school, college and beyond.
And education doesn’t have to be the only goal. Depending on the family’s needs and the policy, accumulated cash value could provide financial flexibility later in life for other milestones and opportunities.
For many clients, juvenile life insurance may simply be something they haven’t thought about, or even realized was available.
That’s where you can help.
Rather than leading with a product, start with the family. Ask about their goals, what’s changed and what they want to put in place for the people they love.
Start the Conversation
Talking about juvenile coverage doesn’t have to feel like a product pitch. Back-to-school season gives you a timely reason to check in and ask a few simple questions.
Try Conversation Starters Like These...
- “With the kids heading back to school, have you thought about whether your current financial plan includes protection for them, too?”
- “When you think about your child’s future, college and beyond, what are you doing today to prepare financially?”
- “We’ve talked about protecting you and your spouse, but have we ever discussed coverage for your children?”
- “When you think about what you want to put in place for your child’s future, what’s most important to you?”
- “Has anything changed in your family since we last reviewed your coverage, a new child or grandchild, for example?”
- For grandparents: “You’ve done a lot to help prepare your family for the future. Have you ever considered whether life insurance for your grandchildren could fit into those plans?”
These questions can lead to a broader discussion about both protection and future financial goals. Start with the family. Listen to what matters to them, understand their goals and then determine whether juvenile life insurance may be an appropriate part of the conversation.
Know the Guidelines Before You Submit
Once you identify an opportunity, knowing the juvenile coverage guidelines can help you set expectations and prepare the case for submission.
For children ages 0–17
- The child must be at least 14 days old and be a U.S. citizen or permanent resident.
- Acceptable ownership is limited to parents or legal guardians. Guardianship paperwork is required when applicable.
- National Life will consider permanent coverage on a juvenile up to a face amount of $500,000, regardless of the amount of coverage in force or being applied for on parents or siblings.
- For requested amounts that bring the juvenile’s total line of coverage to $500,001–$1 million, National Life may consider coverage up to the amount of insurance in force on the breadwinning parent. The parent should be adequately insured, and siblings should have like coverage.
- Juvenile applicants requesting more than $1 million are considered individually. National Life may consider amounts up to 50% of the insurance in force on the breadwinning parent. The parent should be adequately insured, and siblings should have like coverage.
- For total line requests greater than $3 million, sufficient financial or estate planning should be in place, and documentation of that planning will need to be shared with underwriting.
Writing Business in New York
New York contracts have additional rules to keep in mind.
For juveniles ages 0–4 years and 6 months, coverage is limited to the greater of $50,000 or 25% of the coverage on the life of the parent who is applying.
For juveniles ages 4 years and 6 months–14 years and 6 months, coverage is limited to the greater of $50,000, 25% or 50% of the coverage on the life of the parent who is applying.
If parents are joint owners, the coverage is based on the parent with the greater coverage, whichever is greater.
These limits do not apply when a grandparent purchases coverage on a child and the child depends on that grandparent for support. In that situation, normal juvenile guidelines may apply.
For New York juveniles ages 14 years and 6 months to 17, refer to the standard juvenile coverage guidelines above.
Make It Your Back-to-School Assignment
Think about the families already in your book of business.
Since you last met with them, have they welcomed a new child? A new grandchild? Have children grown into a new stage of life? Have you helped insure the parents but never discussed coverage for their children?
So, here’s your back-to-school assignment for August: Identify a handful of families in your book of business who could benefit from a juvenile coverage conversation.
Review. Reconnect. Start the conversation.
Helping families prepare for what’s next may be one of the most valuable things you help them check off their back-to-school list.
Because They Won’t Stay Little Forever
Parents know better than anyone how quickly the years pass.
The child carrying a new backpack into kindergarten today will be heading to middle school, high school and eventually adulthood before they know it.
Back-to-school season reminds us that every new year is another step forward. It can also remind us that preparing for a child’s future isn’t something families have to put off until they’re older.
This August, help your clients think beyond the backpacks, pencils and first-day photos.
Start the conversation today about helping protect their children’s tomorrows.
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