OK, here is the policy that I got for DS...
6/year for 0,000 whole life. This is with NY Life. Does that sound
good?
For us, we have about ,000,000 between term and whole life (more term
than whole life). We're going to rea**ess how that would cover us in
something dire happens.
Thanks everyone for the great information![QUOTE=snoopywoman]
So Gerber isn't really a insurance company? I'm confused here...
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Gerber Life is an affiliate of Gerber Products Inc. It is a life insurance company, however it's a sideline business to a larger company whose primary business is consumer products. I think what was meant by this comment is that if you went to a company whose entire primary business is insurance (Prudential, State Farm, etc.), you could probably get a similar (or better) policy to Gerber at more competitive rates. People hear about Gerber Life having insurance for kids because that is the only kind of policies they sell so that is what they advertise. And many people just sign up for that withoug looking further. All of the big insurance companies have these policies too, but you just don't see that in the forefront of their advertising. Insurance is definitely something that is worth shopping around for, and it's probably one of the easiest things to shop around for from home using your computer and telephone.
I think it's a good thing to look into, but not at the expense of your own insurance. I'd recommend making sure parents have adequate coverage before spending money on coverage for the kids.
Okay, how much is regular life insurance for kiddos then? I pay a little over 0 a year for BOTH kids total. So, about 0 each for a year. I didn't find that expensive - but maybe it's a lot less expensiver for either?
And, it isn't for anybody - they ask health questions prior to giving you insurance. At the time I got it, ds didn't have a diagnosis (we didn't really even suspect at that time) so I never put anything down about an ASD. But, they cannot then deny him coverage after we initially get it, once we have it. That at least, is what I understand. They don't ask any more health questions in order to continue insurance and he doesn't need to answer any questions in order to get more coverage when he gets older - it's guaranteed. Maybe I read it wrong, but that is what I understand.
We got the insurance in order to cover him if he did get a major illness/disability (SO glad we did!).
So Gerber isn't really a insurance company? I'm confused here...
I assumed that no one else would cover him due to his disability. Obviously, I'm not going to lie about it. But when they ask questions like does he have mental impairment - I think I would answer no. He doesn't have mental impairment. Does he think DIFFERENTLY than others - well, yes. But, I don't feel he is to the degree of being impaired because of how he thinks. Maybe I'm misinterpreting the question - but to me, I think it refers to people who have a diagnosis of mental re*ation? This is all so confusing and overwhelming. Oh - wait. That was yesterday's thinking. Today is NOT "poor me" day and I'm not going to go there!
Yes! Adequate life insurance for the family's primary breadwinner should be the primary focus. The more an individual contributes financially to the family, the more insurance that person needs.
One way to think about it is that if one of you dies, you want to be able to maintain the same lifestyle for the survivors as they have today. Let's assume we have a family with a working dad and SAHM and little kids. The dad should have enough life insurance to pay off the house, the cars, any other outstanding debt, to put away for college for the kids, and for his wife to live off of for a number of years so that she isn't forced back to work while the kids are still little. The mom should have enough life insurance to pay for a nanny/childcare, and a house cleaning service, until the kids are older. In this case the dad would need a lot more insurance than the mom. In my mind, the only reason to insure kids now is to get them something young so that if they develop a major health issue later that would deny coverage (or make it cost prohibitive) then they already have something. (The other reason to insure kids is to cover their funeral expenses in case they die which is something I refuse to think about.)
We have plenty for dh - approximately 12 times his current income (which is a pretty decent income). For me, I only have about enough for one year's salary. I probably should do double.
I'll definitely try to look around and see what is out there - when I get a chance!
I'm the primary income in my home and I'm WAY insured. In addition to our own insurance of 10x my salary, my company insures me, with a massive extra rider of business travel accident insurance. I sometimes joke with dh (sick humor, I know) that his only hope of winning millions in the lotto is if I bite it on a business trip LOL!
Snoopywoman, sounds like you've got it covered well!
joe again, You are right about Gerber. They are certainly not a bad company but life insurance is not their main business. I am licensed with 34 different life insurers, they all have biases to certain medical conditions. State Farm probably does not like spectrum disorders because of "potentially" high risk behavior later in life. They can deny or offer insurance to anyone they wish, probably should not take it personal. NY Life is better company anyway. State Farm main line of business is Property and casualty insurance not Life.
On the topic of how much do I need? You only need a small amount for a child but you should get permanent insurance not term. Term expires and if they have developed other health issues they could not qualify for new coverage at expiration. a ,000 perment policy should require an outlay of around 300 per year, but will be guranteed for life and will build substantial cash value. The parents however need a bunch, a general rule of thumb is 10 times your annual income. a combination of term and permanent insurance works well for the parents. Happy to answer another questions.
I highly recomend variable life for young people. The #1 prerequsite for investing in the market in a long time horizon. If you are older and market averse, meaning you simply cannot stomach your account ever going down,you should not participate in the market.
Most policies will have a managed portfolio to help you curtail any market swings.
As a financial planner who believes in the need for both types of policies. I know from first hand experience what pays and what does not. Over the past 10 years my firm has paid 231 death claims. 14 were for term insurance 217 were permanent policies even though we write twice as much term as we do permanent. 97% of term policies never pay a death benefit. The people that write about what to do are usually failed financial planners who took up writing about it to make a living.
In planning for kids with special needs we must make sure we create an estate for them after our demise to protect them from the world. Inflation plays a huge role. We might need to leave enough to support someone 40 years after our death. Permanent life insurance in a special needs trust is the most effective way to do this. Also a second-to-die policy can maximize the death benefit.
We actually have all 3 types of policies in varying amounts. It's interesting,Okay, so are you talking about the variable life policy for the child or for the adult or for both? I know SO little about life insurance and I need to start researching this a lot more. YIKES - one MORE thing to do (it never ends!).
Joe - thanks SO much for responding. To a lot of us, the insurance world is very confusing and I for one am very grateful that you took the time to answer this stuff. Trying to find a competent person who can advise us on financial planning for a child with special needs - well, it just isn't easy. So, I feel like I need to educate myself before trusting someone else to figure it out. Thanks again!
Just wanted to add that I found this information very helpful as my husbandI don't. But, I knew that might happen so I got some life insurance through Gerber for ds BEFORE I got a diagnosis. This is something he can keep his whole life and he doesn't have to answer any more health questions as long as the payments are made. And, it can increase without any questions at certain ages.
I personally think it's horrible that insurance companies can do that. My guess is that with all of the autism awareness going on - that someone will start campaigning for this. However, I'm guessing it is something that will be fought for AFTER several other major things are fought for.
Anyone up to the task? I've got too much on MY plate right now. But, maybe in a few years (ha! Who am I kidding - I think things will only get MORE hectic, but I keep dreaming!).
Our kids are insured with Thrivent Financial. We took out policies when the children were babies. I called them a while back just to find out for certain if they offer policies to diagnosed kids. The supervisor I spoke with said they do. However, if the child isn't already insured with them, I think you have to wait until the child is 5 years-old. I'm sure this is so they can determine how affected the child is, which will of course affect the amount you have to pay.
I actually called a couple of companies to see if they offered policies. None of the ones I called did. (I can't remember who I called.) Thrivant was the only one who seemed a little more progressive with their thinking.
Has anyone else found out anything about life insurance and ASD? Are there any other companies offering policies to kids with ASD?
ETA - I found this by a mother trying to get life insurance for her kids with ASD.
http://www.bellaonline.com/articles/art42796.asp
Ignorance?
Did you try and get a denial of coverage letter? If so, did they state the reason? I believe that you have a right to know. You can also appeal.
LeAnne - I completely agree that they shouldn't be allowed to discriminate since there is nothing that statistically shortens the lifespan of a person with ASD. Thanks for the suggestion for Minnesota Life. My question is - will the premiums be a lot higher since he has a disability - even if it doesn't affect his lifespan?
CAS' Mom - You go girl! I have thought too, that it probably stems from riskier behavior. But, it is gross discrimination in my opinion as well.
Which company turned him down?I read the article and got confused. They seemed to be calling Globe Life and Gerber Life the same company - or did I miss something? They aren't the same thing, although both offer policies for children's life insurance - I know because I've gotten mail from both.
I may look into getting more through that People's Insurance. Thanks for posting those links!
We have aetna and they don't cover anything developmental or relating to autism.
Laurie
Laurie - are you talking about health insurance coverage or life insurance coverage or both?Minnesota Life will sell you a policy. Other health issues can make a person, child or not, have to pay a higher premium or be turned down. For example, a person with Down Syndrome has a statistically shorter life span according to actuary tables, so that person's cost for the policy would be higher.
My husband is a licensed life insurance agent. Your minor aged son should not have been turned down if his only issue is ASD. I would suggest trying other companies.
Thanks for the answers. This makes no sense to me or dh because it's notWow - thanks! He has no other health issues whatsoever. He even had chromosomal testing and everything came back negative - in other words, no chromosomal abnormalities. Eats like a horse - mostly healthy stuff. Brushes his teeth twice if not three times a day (without prompting!). Gets very upset when people are smoking cigarettes wondering why they would do that since it causes lung cancer? (not meaning to offend but dh's dad died of lung cancer and this was told to ds at a young age - we're kind of regretting telling him that now!). Insists on getting plenty of exercise each day.
In other words, I'm guessing this kid could easily live to be 100 with his great health habits if he keeps them up!
I don't understand how this could not be illegal since it is discrimination as a whole against an entire population of people with a certain disability that has absolutely no impact on lifespan and what they are insuring for.
CAS mom - DH is very curious as to what carrier turned your child down.
Snoopywoman - because Gerber is guaranteed issue for ANYONE it is inordinately expensive. Try a real insurance company with real underwriting - you will probably do better.
Snoops - dh says each underwriter that gets a case might see things differently from another underwriter. Different carriers have different guidelines. It is not discrimination in the legal sense because they have the right to offer or deny coverage to whomever they wish.
However, it chaps my backside to hear this!
Here is my husband, Joe.
you should consider permanent insurance with an inflation rider. this way the death benefit will increase without having to go through future underwriting. keep trying other companies, baring any other health issues I am sure some carrier would write. Insurance company ratings are important though. If you have never heard of them you should probably keep looking.
sounds good. Just a suggestion though, why not consider a variable life policy. Variable means that the cash value is invested in the stock market. Kids and younger parents have a long time horizon to hold these permanent policies. A good portfolio will out perform fixed whole life policies over time, meaning that the policies will pay up quicker and you will have more cash value over the long haul. NY Life has variable universal policies.Joe and LeAnne:You are on the right path. The concept of buy term invest the rest makes sense if anybody would do it. Human nature being what it is, it becomes buy term and spend the rest. In the thousands of people I have worked with over the years I have never seen a completed buy term invest the rest program. Combining the investment with the insurance cost makes all the difference in the world. Also the growth on your cash value is tax deferred with access to your basis tax-free.
It is important though, to research the company you use carefully. As with any product or service there are plenty of bad policies from marginal companies out there.
Hey - this is ACTUALLY LeAnne right now. Joe's in the shower. Don't know if you got what he meant by 'young.' We have VALs on the boys and on ourselves, plus other stuff too and we are in our mid/late 40s. Wow - I am officially young!! I love that man...