Baby Sitter Policy and Childrens Guardian Fund, two concept presentations

The baby sitter policy and childrens guardian fund are two concept selling ideas I used during my selling years. If you have not read the concept selling and word pictures section, please do so, then click on your return browser button to return to this page.

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The Baby sitter policy

I used to show people a brief overview of my financial plan and would explain to them why I have certain policies like the baby sitter or guardian trust program and what they are suppose to do. These two presentations are concept selling ideas.

You can try to sell an insurance policy on the spouse, or paint some word pictures as to why they should have money for day care and babysitters in the event of a death.

Which idea sells better? An insurance policy on Mrs. Prospect if she dies, or a baby sitter policy to make life easier for the kids.

As an example, Instead of talking to the prospect about a life insurance policy on his wife I would say Mr. Prospect I have a baby sitter policy on my wife? Let me tell you why.

What is a baby sitter policy? Quite simply, Mr. Prospect, every person has to get up and go to work to generate income so they can pay their bills. And if they are a two income family and something were to happen to one of those incomes, it will create severe problems.

And if not working, you Mr. Prospect will be faced with an enormous task of trying to take care of your young children, with the added financial burden of paying $500 a week, or more for day care or a nanny.

I have seen many husbands that lost their wives be subjected to so much strain, it made them just about crazy, trying to be a Mom and Dad at the same time. It also impacted the children with this added financial strain.

In many cases, I would see this young person want to bring their folks into the picture to help, maybe at a time in their folk’s lives when they were just getting ready to retire or enjoy life and that is not fair.

What is a baby sitter policy?

Basically it is made up of part whole life and term insurance. The permanent part was designed to be kept as a final expense policy on the wife for the future, and the term part would provide enough money for hiring a baby sitter or day care provider till the children are old enough to fend for themselves.

I use to calculate what a person thought they would need, to hire day care providers till there children reached age 16 or so. I might include funding for a house cleaner or nanny depending on the person's career or job. As an example, if a person needed $500 per week for day care and children were 2 years old, that is $6000 per year for 14 years or a total of $84,000.

After my calculation, I would say, Mr. Prospect, it looks like we need this much money for this concept to be in play. At your age we could probably do this for about $xx(est.) month. This $xx month would then provide the $500 month plus cash for other emergencies. Mrs. Prospect wouldn't you agree this is a good idea so that the kids are able to grow up with a happy father?

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The children’s guardian fund program:

This is another concept selling idea. It does require a little work on your part.

This can be a primary sales presentation or a secondary sales presentation at an annual review. Once I got the client to agree on this concept, we would then work out a dollar requirement and then I would say

"Mr./ Mrs. Prospect, before we can set up the trust account and trust wording we will need to make sure we will have this money available. Let’s complete an application to get this concept started.

Basically a person will need to revise their will and add a trust arrangement to accommodate the release of the directed funds.

This concept is made up of a trust account added to a persons will that is set up and funded with an insurance policy (money) to help the guardian of their children in the event both parents died before children were of age.

One of the problems many young families face to day is who do I ask to be the guardian of our children in the event something happens to both of us. Do you go up to your brother, sister, cousin, aunt, uncle and say: (We are looking for a guardian to take care of our kids in the event we both should die. Would you be interested? Well, they probably got their own kids and their own financial problems. Is it fair to add another financial burden to them?)

Visiting with potential guardian:

On the other hand, what if you go to who ever you want to be guardian of your children and say something like:

“We feel it is time we set up a guardianship arrangement for our children and we would like you to consider being the guardian of our children in the event something was to happen to both of us.

So that this will not create an additional financial burden on you and your family, we have set up a guardian trust fund program. This guardian trust fund provides funding for our children and financial help to the guardians as designated by our last will and testament, this guardian trust fund is set up to the following:”

This trust fund is instructed to pay out money as follows; To pay for children's health and life insurance policies

To pay for all health and welfare

To pay for all medical expenses on and above insurance coverage

To pay for dental expenses

To pay to the guardian a monthly fee of $500 per month till youngest is age 18.

To pay for their food and clothing

And to add another room on to existing house or buy a bigger house using an allowance of $25,000 for the addition or down payment as need be.

Would you be interested in being our children's guardian under these conditions?

Wouldn't this be a better way to approach someone, rather than coming to them and saying, we are looking for someone to be our children's guardians if we die. Would you be interested? And they are thinking, man I can hardly take care of my own kids right now.

Note: I use to have both these concepts typed up and leave them with my new clients to review after the delivery or after the original sale, so as to plant the seed for a future sale.

You can use existing policies by naming the contingent beneficiary the trust and in most cases if the client buys into this concept and you add up all the money needed to cover the above items you will end up selling another policy.

As an example if youngest child in 2 years old and you plan to pay out $500 to the guardian till child is 18, that is 16 years times $6,000 year or $96,000 just for that, add in the extra room cost, and the other items and it comes out to a large number. Certainly a person can add or subtract, but I use a worksheet to calculate the money needed for the guardian trust fund. This is a term sale policy opportunity, and you can convert portions to whole life later on.

You may even want to use the above concepts as a target marketing tool.

Learn and Earn

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