8/28/2023 0 Comments Globe life insurance online![]() ![]() A 30-year-old nonsmoker should be able to get $100,000 of term coverage for about the same annual cost that would buy $25,000 of Globe Life protection for an 8-year-old kid.įinally, we get to the cash value of the policy. If the parents don't have an insurance policy on which to purchase a rider, they should protect themselves instead of covering the kids. That's the best you can hope for on a policy with no physical, as the insurer always assumes that the only ones who would buy low-grade coverage are people so ill that they can't get coverage elsewhere. ![]() But if you buy more coverage from Globe Life, you are paying some of the highest rates available effectively, any child younger than 18 is priced as if they were a smoker. Most riders will not cover a child for more than $10,000 in protection. The Young American plan is a bit cheaper than that if your child is under 7 years of age, but costs dramatically more if the kid is older. Shopping around at several companies, it was easy to find insurers who would add $10,000 in coverage for a kid for about $50 a year. Globe officials would not connect me with McAndrew, and company President Chuck Hudson did not return my call. ![]() If the goal is simply to cover funeral costs in case of a disaster, that job can easily be accomplished by adding a child rider to the parents' policies.Īs parents have figured that out, it makes you wonder how many of those millions of policies lapsed before the child became an adult. Insurance should cover what you can't afford to replace, and because minors are not the family breadwinners, the protection is not necessary. McAndrew says, "millions of concerned parents and grandparents like you and I have started Young American Plans since the policy was first introduced in 1964.īut few people outside of the parents of the Olsen twins really need to buy life insurance to cover a minor. A letter from Globe Life's Chief Executive Officer Mark S. The sales pitch boils down to the $1 intro period, the chance to protect the future insurability of the children, a fixed premium, the cash value of the policy and the ease of application. The product information and application take two sides of a narrow sheet of paper you can apply online in about two minutes. Young American Plan is about as basic as it gets. Instead, insurance is a product designed to provide protection and, in the case of whole life policies such as Young American, build some cash value.įor the purposes of Stupid Investment of the Week, however, consumers are expecting a return protection on the money they put down in that light, virtually all financial products can be seen as investments. ![]() After that, it offers up to $25,000 of protection that can be kept in force up to age 25 premiums run from $1.99 per month to $18.99 per month, depending on the age of the child and the amount of coverage being purchased.įrom a regulatory standpoint, insurance is not an investment, and it should not be sold as such. It is a whole life policy that promises to charge just one buck for the first three months of coverage. The Young American Plan is sold by the Globe Life and Accident Insurance Co. No one should get into an investment without knowing how to get out. In the case of a bad insurance policy such as the Young American Plan, one of the problems is that none of the sign-up information provides even a glimmer of what happens when you cancel the contract. If you don't want to throw money away like that, you'll see why the Young American Plan whole life insurance policy being advertised on television nationwide is a worthy choice for Stupid Investment of the Week. "Would you spend hundreds or thousands of dollars on something your children or grandchildren don't need, for a return you can't determine, for a purpose you could easily achieve more effectively by using a different product? "Would you spend $1 on something that could provide your children or grandchildren with a lifetime of value?Īsked that way, almost anything can sound like a good deal and a kind way to treat your family.īut the paperwork that contains that question a letter promoting Young American Plan life insurance for children avoids a much bigger question, one that goes something like this: ![]()
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