Baby! Baby! Baby! Follow up with New Parents & Grandparents

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Baby! Baby! Baby!  Follow up with New Parents & Grandparents
By:  John Ingrisano, CLU

Meet with new parents and grandparents.  When you get together, do three things: 

1.     Review their life insurance coverage.  Remind them that, if they died tomorrow, the money can be there to replace their incomes and help their family members – not just their children, but also their spouse -- maintain their standard of living.  With life insurance, they can select the amount needed to help meet living expenses, pay the mortgage, and even provide a college fund for their children.  Remind parents that the potential cost of raising a child from birth to age 18 can top $245,000.[1] 

2.      Encourage them to start building a college fund.  College costs may seem daunting, but parents of newborns have about 18 years from cradle to college orientation.  Remind parents and grandparents that, by starting today (and even if the children are older, it is still never too late), they can make sure at least some of the funds are there to help children become debt-free college grads.  Current college costs:  For the 2015-2016 school year, the estimated total cost for an in-state public college averaged $24,061.  Private schools were almost double that.[2]   

3.      Discuss starting their own life insurance programs.  Explain to them (and grandparents are often the best prospects for this idea) that by purchasing coverage for children when they are young, they can guarantee their children's insurability for life.  Plus, with a quality cash value policy, not only will the premiums never be lower, but policies may accumulate cash values that can someday pay education expenses or provide a down payment on a child’s first home.