Looking for a gift for your grandchild that they will never outgrow, will never break, and will never go out of style? It’s called permanent life insurance.
Set up your grandchild’s financial future with a life insurance policy. Given early in life, permanent life insurance is a powerful financial tool with numerous possibilities. As an extended caregiver, grandparents have the right to purchase life insurance for their grandchildren, in the child’s name, where they become the policy owner once they reach adulthood.
Permanent life insurance provides coverage for as long as the insured person lives, and the premium, whether whole or universal, is fixed for as long as the policy is in force. The policy accumulates cash value every year, and the premiums, unlike other types of insurance, do not increase with age. Permanent life insurance premiums are locked in at the child’s current age (at time of purchase) for life.
With the cost of a college education becoming insurmountable, gifting a life insurance policy gives your grandchild the ability to borrow against the accumulated cash value to help fund their schooling. The benefit of this, as opposed to a tax-advantaged 529 plan, is that the cash value from a life insurance policy does not factor into college financial aid eligibility calculations.
Insuring a child under 18 while they are young and healthy is a great way to lock in lower premium rates and provides a future insurability guarantee. If your grandchild has a medical condition that would make it difficult or expensive for them to qualify for life insurance late in life, a whole life insurance policy secures them for the rest of their life.
Life insurance is also a gift with no strings attached since it provides for a tax-free cash payout. Under the current law, cash values that accumulate in the policy are tax deferred.
With the benefits of accumulated cash value, fixed premiums, preferential tax treatment, and guaranteed future insurability, why wouldn’t you gift life insurance to your loved ones? The professionals at Charles Leach can help you find the right life insurance policy that will give your family a financially secure future. Call them today at 1-888-275-3224.