Newborn baby girl in New York life insurance deal!

[DMYD]

Only one parent needs to have insurance (and that coverage has to be at least $1 Million) but all siblings need to be insured. The question is if you can sign up the siblings and then cancel them once your daughter is approved.

of course you could no one is forcing you to keep it, just pay monthly then cancel it. 

[yelped]

Only one parent needs to have insurance (and that coverage has to be at least $1 Million) but all siblings need to be insured. The question is if you can sign up the siblings and then cancel them once your daughter is approved.

Are you sure? Only one parent?

[joeb1]

I have confirmed this deal with multiple reliable  sources
Pm me if you need any guidance.

Disclosure: I have no monetary gain if you sign up for this and I am not a life insurance agent or someone who deals with life insurance. I am just offering to answer any questions anyone may have

As mentioned many times in this log of posts it is only for girls and under age of 2

[MarkS]

Are you sure? Only one parent?

Yes

As mentioned many times in this log of posts it is only for girls and under age of 2

I've been told by an Allstate agent that the child can be older it's just not as financially rewarding. For a 3 year old, you would pay like $512 a year vs $248. Still a nice return but not as exciting

[Barryg]

Not as cheap as on young healthy males, I bet

F life insurance is generally cheaper than M.

[Barryg]

Not much to add besides what has been already stated, except that I happened to know about this and calculated over 11% IRR by year 13. Regardless of keeping plan for 10, 13, 20 years it would prob. be worth it to cash out at that point and pay tax, or roll into a new permanent ins. plan called a 1035 exchange as the loan strategy when borrowing at 8% doesn't sound that great. Besides, if a 20 year old girl has a tax bill on a $10,000 gain the tax bill may not be that high.

[yelped]

Great! Can someone recommend an agent. My wife is insured for 1 million and my daughter is 20 months old.

[skyguy918]

Not much to add besides what has been already stated, except that I happened to know about this and calculated over 11% IRR by year 13. Regardless of keeping plan for 10, 13, 20 years it would prob. be worth it to cash out at that point and pay tax, or roll into a new permanent ins. plan called a 1035 exchange as the loan strategy when borrowing at 8% doesn't sound that great. Besides, if a 20 year old girl has a tax bill on a $10,000 gain the tax bill may not be that high.

Why would you roll it into a new permanent policy? What would you gain over just continuing the policy as is?

Only one parent needs to have insurance (and that coverage has to be at least $1 Million) but all siblings need to be insured. The question is if you can sign up the siblings and then cancel them once your daughter is approved.

Are you sure about this? It stands to reason that the 25% of face amount rule only applies to one parent (the one applying for the minor's policy). But if they require 'like coverage' on the siblings they'll surely require it on the other parent as well.

Of course the same solution applies to that problem as well - buy a policy and let it lapse once the child's policy is secured.

[MarkS]

Are you sure about this? It stands to reason that the 25% of face amount rule only applies to one parent (the one applying for the minor's policy). But if they require 'like coverage' on the siblings they'll surely require it on the other parent as well.

Of course the same solution applies to that problem as well - buy a policy and let it lapse once the child's policy is secured.

That's what the Allstate agent told me

[Barryg]

Why would you roll it into a new permanent policy? What would you gain over just continuing the policy as is?

Depending on economy in 20 years from now and what is offered then. The return doesn't stay high on these forever, as far as the cash value. Ex. from years 20-25 the return is between 6/7% year to year and keeps going down. For today that's a great guaranteed return, but who knows what things will look like in 20 years.

[joe1234]

There's an עץ יוסף that states that the reason why the gender of a child is hidden from the mother, is because the anticipation to know if it's a boy or a girl helps her with the childbirth.

where?

[skyguy918]

Depending on economy in 20 years from now and what is offered then. The return doesn't stay high on these forever, as far as the cash value. Ex. from years 20-25 the return is between 6/7% year to year and keeps going down. For today that's a great guaranteed return, but who knows what things will look like in 20 years.

While technically possible (however unlikely), layering on the fact that you'd be resetting your rated age and possibly health rating makes it a near certainty that rolling over to a new permanent policy would not be profitable. Either cash out or maintain the policy. Which one depends on the details of Allstate's loan arrangement and whether you're actually able to reduce or eliminate tax on surrender in practice.

[Mordyk]

There's an עץ יוסף that states that the reason why the gender of a child is hidden from the mother, is because the anticipation to know if it's a boy or a girl helps her with the childbirth.

please get me the exact source. i can use that defense with my wife now. every pregnancy we argue if we should find out

i think a poll would be nice since this is controversial.

and regarding this policy. i spoke to an agent and he explained to me that this is an actuary miscalculation. but guaranteed is guaranteed

[churnbabychurn]

These days the gender of the baby is known to the ultra sound technician and is displayed on the screen.
This is no longer considered "hidden" and there is no question of "finding out". Closing your eyes and telling them to keep the gender to themselves seems a little silly IMHO.

[Mordyk]

These days the gender of the baby is known to the ultra sound technician and is displayed on the screen.
This is no longer considered "hidden" and there is no question of "finding out". Closing your eyes and telling them to keep the gender to themselves seems a little silly IMHO.

i have not seen it displayed on the screen and usually the technician asks if you want to know the gender.

[ar]

Btw I'm thinking now, imagine this deal would've been for males only - there would be a discrimination lawsuit filed already  

[churnbabychurn]

i have not seen it displayed on the screen and usually the technician asks if you want to know the gender.

Of course it's in the screen, you just need to know what to look for

[Yosel]

. Besides, if a 20 year old girl has a tax bill on a $10,000 gain the tax bill may not be that high.

The tax bill will be going to the owner of the policy at that time................... not Davka for the 20 year old

[churnbabychurn]

Don't the actuaries and insurance companies have a basic review process? How did this get through?

[AsherO]

Don't the actuaries and insurance companies have a basic review process? How did this get through?

I wonder the same thing.