Definition
Jumping Juvenile (Life Insurance)
Jumping Juvenile: In life insurance terminology, this refers to a policy written on the life of a child, typically in units of $1,000. The unique feature of such policies is that the coverage amount automatically increases, usually doubling, when the child reaches the age of 21 without any need for proof of insurability, such as undergoing a medical examination.
Meaning
A Jumping Juvenile policy is beneficial in ensuring continued and increased financial protection for the insured child, transforming a modest initial policy into a substantial one by the time the policyowner reaches adulthood.
Etymology
The term “Jumping Juvenile” fuses the physical act of “jumping,” symbolizing a notable increase, with “juvenile,” referring to a young person or child. This vividly describes the significant jump in policy value once the insured child reaches a set age milestone.
Background
Jumping Juvenile policies were introduced to ease the pathway into adulthood by providing increased life insurance coverage for young individuals without the burden of proving insurability, thus ensuring no pre-existing conditions affect their eligibility.
Key Takeaways
- No Need for Proof of Insurability: Upon turning 21, the insured child does not need a medical examination for the policy’s value to increase.
- Affordable Start: Initially, these policies are purchased at a lower cost, providing families with an affordable entry into life insurance.
- Substantial Coverage Growth: The policy generally doubles in value, giving the insured person more robust coverage as an adult.
Differences and Similarities
- Similar to Term Life Insurance: Like other life insurance policies, it provides financial security for the heirs in case of the insured’s death.
- Different from Standard Life Policies: Unlike typical policies that require proof of insurability for coverage increase, Jumping Juvenile policies do not require such proof at the 21-year mark.
Synonyms
- Juvenile Jump-Up Policy
- Child Life Insurance with Automatic Increase
Antonyms
- Term Life Policy
- Variable Life Insurance
Related Terms with Definitions
- Whole Life Insurance: A policy that provides lifetime coverage with a savings component, typically with level premiums.
- Convertible Term Policy: A term life policy that can be converted into a permanent life insurance policy without a medical exam.
- Proof of Insurability: Evidence, often through a medical exam, required to show an individual is insurable at standard rates.
Frequently Asked Questions
What makes the Jumping Juvenile policy unique?
Answer: Its automatic, proof-free coverage increase at the age of 21 stands out, ensuring enhanced financial coverage without medical re-qualification.
Why are these policies typically set at $1,000 units?
Answer: This standard unit makes the initial policy affordable for families and simplifies the doubling process when the child reaches 21.
Are there any limitations to Jumping Juvenile policies?
Answer: While they provide automatic increases, the initial coverage amounts are typically lower compared to other policies, which might require additional coverage through other insurance as adulthood approaches.
Quotations
“A secure tomorrow for your child starts today.” – Anonymous
Proverbs
“A young twig is easier to bend.”
- Emphasized in planning early life insurance to secure future financial stability.
References
- Intro to Life Insurance: Financial Stability for All Ages - John H. Matthews
- Family Financial Planning - Rebecca Winters, PhD in Personal Finance
Quiz Section
Wishing you insurance success and financial growth! Remember, life is like a policy – unpredictable but full of potential!
Eleanor Whitfield
