Jumping Juvenile Policy
Juvenile insurance whose death benefit jumps to a multiple of the original face at a stated age, such as doubling at 21.
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Under a jumping juvenile life insurance policy, what happens to the face amount when the insured child reaches age 21?
The face amount increases substantially, typically doubles, without an increase in premium — A jumping juvenile policy is a whole life policy on a child whose face amount is set to increase automatically, usually doubling, when the child reaches age 21 (or a similar specified age). The premium is based on the child's very young age, and the increase occurs without an increase in premium and without evidence of insurability. This lets parents lock in low, insurable coverage at a level the child can later continue as a young adult.
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A jumping juvenile life insurance policy is designed so that:
The face amount increases automatically at a specified age, such as 21, with no additional premium or evidence of insurability — A jumping juvenile policy is whole life purchased on a child that jumps to a higher face amount, commonly several times the original amount, when the child reaches a specified age such as 21. The premium stays level and no evidence of insurability is required because the insurer priced the anticipated increase into the level premium from the start. This locks in insurability and low issue-age rates while the child is young, giving the child affordable permanent coverage as an adult. The name reflects the death benefit jumping upward at the specified age, providing a larger estate just when the young adult begins to need protection.
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