Jumping Juvenile Policy
Definition - What does Jumping Juvenile Policy mean?
A jumping juvenile policy is life insurance meant for a child and is usually bought by a parent. This policy increases in value when the child reaches 21 years of age but the premium stays the same. If this insurance is continued at that age, the insurer will not demand any additional requirements as condition for the insurance, such as a medical examination.
Insuranceopedia explains Jumping Juvenile Policy
The parent is the applicant for a jumping juvenile insurance policy since minors cannot purchase insurance products.
The insurable age for a juvenile can vary, but the maximum age to insure a child is usually 15 years old.
Decisions about the insurance are in the hands of the adult who purchases the policy, but control over the insurance can be given to the child once they reach 21 (or the age stipulated in the contract).
Jumping juvenile policies are often purchased to finance a child's college education, provide them with insurance once they reach adulthood, or just to have funds at age 21.