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An Interesting Way to Add to Your Legacy

An Interesting Way to Add to Your Legacy

| November 28, 2022

When you’re thinking of what to get your child or grandchild for a birthday or holiday, do you ever wonder how long that gift will be relevant? Do you try to find things that will remain relevant for a long period of time? There is a gift that a child won’t outgrow, a whole life insurance policy. I know, a whole life insurance policy may not be a shiny exciting gift to a child in the moment, but it offers a way for you to leave a legacy that could provide benefits throughout a child’s life, rather than just in that moment. We all want to see our children and grandchildren get a good start in life and we live in a world where expenses are continuously rising. For young people and their parents, that can mean meeting the cost of college, a wedding, and perhaps buying that first home. What if I told you that whole life insurance could help cover some of those costs.

A Whole Life Policy for a Child

Purchasing whole life insurance for children now will help ensure they have guaranteed protection for life. While the protection it provides will become exponentially more important as they grow older, the other benefit of this policy is that it will hold cash value that continuously increases as the years pass. This cash can be accessed throughout their lifetime for that college bill, that wedding expense, or that first home down payment. You can even set it up to pay annual dividends on their birthday, so every year, even after you’re gone, they’ll be reminded of the gift you gave them when they receive that dividend payment. 

There are typically many payment options for the premium. Many parents and grandparents opt for a 10-, 15- or 20-year premium payment period, which would ensure the policy is fully funded by the time the child becomes an adult. It’s also important to note that the cost of premiums are also generally lower when the insured individual is younger.

While the child may not be excited about this gift right now, that is only because they don’t understand the future impact it can have on their life. As they grow up, he or she will come to realize the power that this gift has and how it can help shape their future, and they will be eternally grateful for that. If you’re interested in learning more about this, we’d love to have that conversation.