When my children were little, in lieu of gifts at Christmas or birthday time, their grandparents invested in their future. When it came time for them to enroll in college the funds they’d invested in a life insurance policy had earned enough cash value to help get my children started on their way.
Whole life insurance works well as a legacy gift for children and grandchildren and grows with them throughout their lives. A policy of $15,000 to $150,000 purchased when a baby is born can accumulate dividends and cash value while the child grows. As long as premiums are paid and the policy is in force, a whole life policy can be used as a savings account to help pay for college, a vehicle or other necessities without losing the death benefit.
Dividends and cash values grow throughout the life of the policy. The benefit is that dividends can be withdrawn and the cash value can be accessed through policy loans. As your child or grandchild needs to make major purchases, the whole life policy acts like a bank from which they can borrow without having to repay at high rates of interest. They also have the option to purchase more insurance as their life circumstances and responsibilities change.
Though there are many benefits to a whole life policy, including a guaranteed death benefit, one of the best is that as your child grows, the policy grows tax deferred. A whole life policy a way to provide a lifetime of savings and financial security for your child or grandchild. With the addition of optional riders it can also provide living benefits later in life.
Toys, clothes and even extra socks make great gifts this holiday season, but when they’ve been outgrown, they need to be replaced. Consider a gift that lasts a lifetime. Contact an AC Financial Adviser about purchasing a whole life insurance policy for your child or grandchild this holiday season. Call 800-576-3136 for more information.