Guest Author - Bonnie Sayers
When I applied for my Life Insurance through Allstate Insurance Company a couple of months ago I also inquired about obtaining a policy for each of my children. When I mentioned to the agent that both my children are on the Autism Spectrum Disorder he informed me they could not be insured.
Today an agent from American Income Life, which works exclusively with Unions told me the same thing - that both my children could not get Life Insurance through their Company.
I found a website www.juvenile-insurance.com that has listed Globe Life, Gerber Life, United of Omaha and Peoples Benefit Life Insurance Company. You can click on to learn more about each of these companies and their policies, as well as enter to obtain a quote.
I chose two companies to get a quote and filled out their data online and submitted an application for my sons with United of Omaha and Gerber Life. United of Omaha is located at insureyourchild.com with the policy known as Juvenile Whole Life. At the end of the quote and application process it is known as Easy Start Life Insurance.
The options for my kids age 9 and 10 were as follows:
6,000 = $5.31
12,000 = $9.63
18,000 = $13.95
24,000 = $18.27
United of Omaha is rated A by A.M. Best Company. The premiums are paid either monthly via a bank draft or on a semi or annual basis through an invoice. The withdrawal date is chosen by the applicant on the website. The first month you make the premium payment with either semi-annual or annual thereafter.
After the approval process the policy will be sent in 10-14 days. The age of the insured is 2 weeks through 19 years of age. You can also print out your application, which is in a pdf format. Premiums never increase with the benefit doubling when the insured reaches the age of 25. The policy can never be cancelled as long as premiums are paid.
The health questions listed for the online application:
Have any of the Insured receive medical care or had heart or circulatory disease?
Have any of the Insured receive medical care for or had a birth defect or a mental abnormality?
Have any of the Insured received medical care or had any chronic illness or condition which requires periodic medical care within the past three years?
I answered yes for both kids - several children can be listed on the same application. Then a line opened up on the page for me to list the ailment name and ailment description. I listed autism for both under name and left the description blank.
I was not clear on whether the application would go through the process or they will be sending me an invoice first before they can review the application. The confirmation email did not mention this, but did state that I would receive an email confirmation regarding their receipt of the application and the policy once it is approved in 10-14 days.
The Young American Plan is through Gerber Life. Their website is childrens-insurance.com. The first month's premium is $1, but they want that and another month for the first payment, so this is a bit misleading and confusing. This first payment can be made via credit card, bank or invoice. They state you get the policy in a few weeks.
The age limit is through 25 with no waiting period or medical exams. There is also a 30-day money back guarantee. The premiums and coverage are as follows:
5,000 = $2.99
10,000 = $5.24
20,000 = $9.74
30,000 = $14.24
The two health questions were:
Any chronic illneess or condition in the past five years being treated and a question about having AIDS.
The following page had a line for me to input the actual condition and for which insured. I chose the $30,000 limit for both kids with the required first payment at $30.48. The amount I chose for United of Omaha was $24,000 with the first premium at $36.54. This is a big difference in premiums and coverage.
I am optimistic that my children will be accepted by at least one of the Insurance Companies. However, with their disability not being insured by other companies - if only one offers them a policy I will purchase it. At this point I really am not in a position to shop around and will wait on the results of these aplications before doing more quotes.
UPDATE - I received two letters in the mail today from Globe Life denying coverage for both my children with the reason listed as "health history". I really do not comprehend why a disability prevents one from obtaining life insurance. A disability is not life threatening, not a disease, but a lifelong disability.
I received a letter from United of Omaha informing me that I need to send $18.27. They are holding the application until they receive payment. Coverage is not in effect until they accept payment and application. This did not specify which child or if it is for both.
The form also has a portion for easy pay option request to have premiums withdrawn from a checking account. The toll-free number for United of Omaha Life Insurance Company is 1-866-272-6373. There is a 30-day free-look where you can return policy for a full refund.
I must have applied at three companies and will be researching more Life Insurance Companies until I find one that will issue a policy to a child who has autism.
When I received the letters from Globe Life I went back to do a quote with Peoples Benefit Life Insurance Company. Their health question on the application -
In the past five years, has any child proposed for coverage: been diagnosed or treated by a medical doctor for: cancer, congenital heart disease or disorder; recurrent kidney or liver disease; mental retardation; cerebral palsy; spina bifida; or any disabling congenital defect?
I stated no for both my children. The option is for $10,000 juvenile whole life insurance. The monthly premium is $6.67, quarterly is $20, semi-annually is $40 or annually at $80. The monthly option is withn a credit card only. The quarterly bill for March 2008 shows the company name is Monumental Life Insurance Company. They are still located in Valley Forge, PA with the bill looking the same and no mention of name change.
**UPDATE** - May, 2008
I called up the Life Insurance Company to request an increase in their policies and instead they issued two new policies for $15,000 each. So now my children each have $25,000 in life insurance and when they turn 18 or 21 that money from the payments will be sent back to me. Their sister Company is called Stonebridge Life Insurance Company.
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