Looking for a unique, lasting gift for your child or grandchild? A shiny new toy, or the latest fashion trend are thoughtful ideas, sure, but there’s another gift that’s far more valuable—and it’s one that a child or grandchild won’t outgrow. When the next holiday, birthday, or special occasion is marked on your family calendar for that special child in your life, consider investing in a worthwhile financial asset for their future instead: life insurance.
Although you won’t find a life insurance policy at the top of a child’s wish list—and, maybe some folks even feel that gifting a life insurance policy to a young person isn’t appropriate, or necessary—it can, in fact, make good economic sense and be a loving way to invest in your child or grandchild’s future.
Here’s Why:
The Gift of Life Insurance has Long-Term Value
Buying life insurance for a healthy young person can be very affordable and it can help that young person prepare for the future. With a permanent life policy, the cash value that grows over time can provide funds that can be borrowed against, or withdrawn as the child grows into an adult. It’s money that can be used to help pay for college, or even as a down payment on their first home. What’s more, as the child matures, he or she may have the option of buying additional life insurance in the future, providing protection for their own family.
Life Insurance Costs Less When You Start Young
Life insurance premiums are based on a number of factors, including a person’s age and health; premiums are generally lower for children because they’re young and healthy. As children grow older, or if their health statuses change, they may not be able to qualify for, or afford life insurance if a policy hasn’t already been started for them. Purchasing whole life insurance for a child now will help ensure that child has guaranteed protection. For life.
Also, depending on the options you select, the policy may allow the child to purchase more protection when certain milestones are reached. For an additional cost, increased protection is available at specific intervals, or life events such as marriage, or the birth of a child. Policies also have the potential to earn dividends that can be used to increase life insurance protection and cash value over time—dividends, however, are not guaranteed.
It Teaches the Child About Investments
Children will outgrow the toys, clothes and virtually everything else that you give them. A permanent life insurance policy, on the other hand, is uniquely different. You not only set an example by instilling the value of financial responsibility, you also give a gift that may, one day, help protect their families and fund their life’s big events.
20 years from now, when it’s time for your special young person to take ownership of the policy, perhaps a personal letter that you’ve thoughtfully included with the policy explaining how much he or she means to you and the important reasons why you bought the policy can be read. Perhaps include a favorite photo or memory, too.
Of course, kids being kids, they might not appreciate the concept of a permanent life insurance policy yet—especially amidst the candles, cake, wrapping paper, and general hullabaloo of the special occasion. So, depending on the age, it’s probably a wise idea to have a toy to toss into the mix—it will likely break and be forgotten at some point, but the whole life insurance policy? Likely not!
For more information on gifting a life insurance policy, or how it works, contact Jessica Maiato, Life Sales Agent at Freisenbruch Meyer on 294-4618 or email her on jmaiato@fmgroup.bm.
