At F&G, we’re proud to assist in the multi-generational planning for families by providing a fixed indexed universal life (FIUL) solution on a juvenile insured (age 15 days to 17 years).
Juvenile insurance is frequently sold as part of a combined financial plan of savings and insurance. Insurance is purchased on the lives of dependent children in anticipation of future insurance needs, which could include savings, education planning and/or protecting their future insurability.
Juvenile insurance is one part of an overall family insurance plan that provides coverage for the parents and siblings.
Provide decades of flexibility
No matter what the future brings, juvenile FIUL insurance can provide flexibility to help prepare for different life stages.
In childhood, parents or care givers can start this funding as an easy way to help establish a financial foundation for the child’s future.
As the child grows into young adulthood, the FIUL policy could build a cash value that could be used for educational planning or funding.
When the child enters adulthood, they gain ownership of their policy and start to take more control of their financial future.
Finally, when they enter retirement, they can know they’re protected by the coverage their parent provided, and their cash values can be used for their retirement needs, like predictable income.
Know what to expect from a juvenile FIUL
Juvenile FIUL solutions can provide the following:
- Flexible premiums and adjustable death benefit amounts
- Cash value accumulation linked to index crediting
- Affordable rates that are generally lower for children than adults
- Can remain inforce regardless of changes in health or occupation, as long as sufficient premiums are paid when due
- Option for children to assume full ownership of their policies when they’re old enough
- Two plan design options:
- Option A — Offers a level death benefit and builds cash value
- Option B — Offers a death benefit that increases as the policy cash value increases
When it comes to the death benefit, juveniles can have up to 50% of the combined coverage amount that their parents have, up to a maximum of $1,000,000 per primary insured. Individual consideration is the basis for amounts over the maximum. Also, all siblings should be covered for similar amounts.
Juvenile premiums can vary in range and can be customized to fit almost any family’s budget and planning needs. The cash value in an insurance policy is tax-deferred, which creates a lifetime savings opportunity that could be used for life needs, such as paying for college or supplementing retirement income.
Finally, a juvenile FIUL policy requires an “insurable interest” between the juvenile and the owner or beneficiary (e.g., parents, grandparents). All juvenile life insurance policies will be written without the need for a medical exam through our exam-free underwriting1 program.
Keep learning about FIULs and how they can fit into your multi-generational planning.