Newborn baby girl in New York life insurance deal!

[ExGingi]

Officially best rate is for up to 1 year old. But I hear they can pass you up to 1.5

Title of this deal and some of the info is a little misleading.

While the rates are most phenomenal for a child up to one day prior to age 18 months (policies can legally be backdated six months, a common practice in the life insurance industry, and since unlike most life insurance companies that go by your nearest age, Allstate goes by age at your last birthday, all the way up to 1 day less than six months after last birthday, can count as previous age). The rates are also very good (i.e. pricing error) up to age 4.5.

[skyguy918]

Title of this deal and some of the info is a little misleading.

The part I thought was misleading (but was actually a case of misreading) was when I read it as New York Life Insurance deal.

[ExGingi]

The part I thought was misleading (but was actually a case of misreading) was when I read it as New York Life Insurance deal.

You are absolutely right about that one. Should be retitled "Major pricing glitch for life insurance on young girls results in phenomenal rates of return. For applications signed in NY ;-)"

[unavailable]

So what are the chances of All State deciding 20 years from now that they don't want to pay anything more than just the premiums?

If parent is not insured, that is.

[Aaaron]

So what are the chances of All State deciding 20 years from now that they don't want to pay anything more than just the premiums?

If parent is not insured, that is.

If parent is uninsured you're not making it through underwriting anyway.

[ExGingi]

So what are the chances of All State deciding 20 years from now that they don't want to pay anything more than just the premiums?

If parent is not insured, that is.

NY State law is one of the strongest out there when it comes to insurance. Contestability period is limited to two years. After two years the insurance company cannot contest the policy. Even if they could do something, that would require them to go to court, which would not be worth it for them for such small amounts. The legal fees would simply not justify it, and they are likely to lose.

See: http://www.dfs.ny.gov/insurance/ogco2005/rg051219.htm

Furthermore, NY State law requires the parent applying for insurance to have 4 times the amount of insurance AT TIME OF ISSUE. To the best of my knowledge there is no requirement to MAINTAIN such coverage long term. To be on the safe side I would make sure you keep it at least beyond the contestability period of 2 years, or just make sure you have enough insurance regardless of what the law says - if you have a family, make sure they are ADEQUATELY taken care of if something happens to you חס ושלום.

[ExGingi]

If parent is uninsured you're not making it through underwriting anyway.

Let's qualify that response.

I have inside knowledge of an Unisured parent who disclosed that fact and got his daughter approved.

The reason was because unfortunately he was uninsurable due a congenital issue. His wife was adequately insured.

[skyguy918]

Let's qualify that response.

I have inside knowledge of an Unisured parent who disclosed that fact and got his daughter approved.

The reason was because unfortunately he was uninsurable due a congenital issue. His wife was adequately insured.

Just hypothetically, what happens if both parents are uninsurable? Does the 25% of face amount law not apply?

[ExGingi]

Just hypothetically, what happens if both parents are uninsurable? Does the 25% of face amount law not apply?

That's a good question.

The way I read the law, I would think that if both parents are uninsurable then the maximum they can apply for their child would be $25,000.

However, the law also clearly states that if Grandparents apply, there is no requirement to have 4 times the insurance.

Based on my information they do ask how much insurance grandparent and parents have even in that case. In my case everyone had more than adequate insurance, so I can't tell you with certainty what happens in other cases, though I have a hunch based on what it seems they are looking for.

[SPOOGER]

That's a good question.

The way I read the law, I would think that if both parents are uninsurable then the maximum they can apply for their child would be $25,000.

However, the law also clearly states that if Grandparents apply, there is no requirement to have 4 times the insurance.

Based on my information they do ask how much insurance grandparent and parents have even in that case. In my case everyone had more than adequate insurance, so I can't tell you with certainty what happens in other cases, though I have a hunch based on what it seems they are looking for.

If grandparent is from new york child is not can grandparent buy policy?

[ExGingi]

If grandparent is from new york child is not can grandparent buy policy?

No one needs to be from NY, as long as application is signed in NY (I.e. You write that the place it was signed is xxxxxx, NY)

[churnbabychurn]

No one needs to be from NY, as long as application is signed in NY (I.e. You write that the place it was signed is xxxxxx, NY)

Wow.. Doesn't sound right but what do I know.

[skyguy918]

Wow.. Doesn't sound right but what do I know.

I'm sure there are variations by company, but here's an example:
http://jh1.jhlifeinsurance.com/jhl-ext-templating/filedetail?vgnextoid=77a4443c39de5310VgnVCM1000003e86fa0aRCRD&siteName=JHSalesNet

[Joe4007]

Not as cheap as on young healthy males, I bet

I'm not an actuary, but female life expectancy in the US is almost 5 years longer than male.

[ExGingi]

The guys at ChasunaFund.com they are telling me that many gvirim would like to put as much money as they can into these plans.

They believe that if anyone gets this policy now and would like to unload it in two years (once the contestability period is over) there will be a very healthy secondary market for these policies (i.e. you can sell it for a quick profit in two years).

[smiley face]

Anybody here used these people ChasunaFund.com?

[Zalc]

Anybody here used these people ChasunaFund.com?

• If you are looking for an honest יידישע Allstate agent, go to ChasunaFund.com. Most Allstate agents don't know much about Life Insurance. Property and Casualty (mostly home and auto) are their bread and butter. ChasunaFund.com was set up by a group of עהרליכע Life Insurance agents working in collaboration with a יידישע, שומר שבת, Allstate agents. They are careful to make sure all i's are dotted and t's crossed so that you can rest assured that you get exactly what you see.

[DMYD]

(i.e. you can sell it for a quick profit in two years).

That's illegal

[skyguy918]

That's illegal

-1, STOLI is illegal, life settlement is not.

[ExGingi]

That's illegal

Based on which law are you saying that?