Colonial Life Offers Standalone Juvenile Life Insurance Plan

PRODUCT: Juvenile life insurance plan

COMPANY: Colonial Life

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through appointed independent agents and brokers.

FOCUS: According to LIMRA’s 2015 Insurance Barometer Study, 45% of those who purchase juvenile life insurance do so to lock in a low rate. To support parents and grandparents who want to plan ahead and get a head start on lifelong protection for their children and grandchildren, Colonial Life now offers a standalone juvenile life insurance plan.

“The younger a person is when life insurance coverage starts, the lower the cost,” explains Pam Jenkins, assistant vice president for product and market development at Colonial Life. “The premiums on this whole life plan are guaranteed to remain the same for the life of the policy, so childhood is the ideal time to secure the lowest rate.”

Buying whole life insurance for children also protects them against the possibility of an unexpected accident or illness, which can make life insurance more expensive or unavailable later.

Just like adult coverage, Colonial Life’s juvenile whole life plan also accumulates cash value at a guaranteed rate as long as the policy is in effect. “This means parents—and children—will always know the amount of the death benefit and cash value,” Jenkins says.

UNDERWRITING: Individuals can choose coverage amounts from $10,000 to $300,000, with options to increase when the child turns 18, 21 and 24 without any health questions.

Each policy covers one child, and coverage is available for purchase until the age of 26. The policy accumulates cash value at a guaranteed rate over the life of the coverage and stays in force as long as payments continue. Insureds can add an accidental death benefit rider at any time. After a child’s 18^th birthday, parents or grandparents can pass policy ownership to the child and enhance the coverage with other optional riders.

Premium payments for the juvenile policy stop at age 65, but coverage continues on the insured child up to age 100. A $3,000 claim payment can help meet immediate needs, such as funeral costs, by providing an initial death benefit payment to the designated beneficiary. If the insured child is diagnosed with a terminal illness, the policyholder can request up to 75% of the policy’s death benefit up to $150,000.

The policyholder can purchase an accidental death benefit rider that pays an additional benefit if the insured dies as a result of an accident before the age of 70. The benefit doubles if the accident occurs while the insured is a fare-paying passenger. An additional 25% of the accidental death benefit will be paid if the insured dies due to an injury sustained while driving or riding in a private vehicle and wearing a seatbelt.

MINIMUM PREMIUM: Policy variables and state regulations around disclosures affect rates.

TARGET: The plan is available as a voluntary benefit to employees through the workplace. Employees can select this coverage for their children, grandchildren, stepchildren or adopted children as a separate policy, whether or not they buy coverage for themselves.

COVERAGE TERRITORY: All U.S. states except California, Montana and New York.

CONTACT: Pam Jenkins, assistant vice president, product development; Colonial Life & Accident Insurance Company, P.O. Box 1365, Columbia, SC 29202; 803-678-6220.

Ronimarie Acord is an IA contributor.