Ever have one of those “Well, duh!” moments? I just recently had one. Here’s what happened:
I received a phone call from a parent inquiring about life insurance for her 20 year old. It took me by surprise because most of the phone calls we get are from parents (and grandparents) wanting to purchase a small “starter” policy for little ones (e.g. newborns/toddlers).
I was intrigued. So I asked (as I usually do), “What are you trying to accomplish?” Her response? “My daughter is in college and has significant student loans to repay. I’m not financially able to pay them back if something should happen to her.” Well, duh, Carrie, that’s a great reason to buy life insurance for a teenager.
In fact, that’s one of the best reasons to buy life insurance, regardless of your age- to pay off outstanding debt and not leave your survivors with a huge financial burden. And buying young is truly the best way- you’re in better health, less medical underwriting requirements & it’s less expensive. For example, my customer purchased a $100,000 20-year term policy for $171.00 annually.
So, mom brought in her daughter and we knocked out the application in about 20 minutes. The policy is now on its way to me. And mom can rest easy knowing should the worst happen, she doesn’t have to worry about adding repayment of her daughter’s debt to her stress. Pretty smart if you ask me.
What are your thoughts? Does this make you understand the value of life insurance better? Or not? Have you done anything similar for your teenage kids? I’d be interested to know your take.
As always, thanks for reading.