Should I buy cash value life insurance for my kids or grandkids?

We are asked frequently “Is there a benefit to buying life insurance for my kids or grandkids?”  The answer is Yes, many!  What are the benefits?  The benefits are the same reasons why an adult would buy the same policy but only stronger because of the time advantage on the child’s side.  Many times, we tell grandparents the next time you think about buying toys or an expensive gift at Christmas time or their birthday, for an item they will stop playing with in a few weeks, consider a whole life or universal life policy.  They will get benefit from a lifetime of rewards and more than likely be able to put a down payment on their future home.  They will thank you for the rest of their lives vs. the toys that will be forgotten in a couple of months.

BENEFITS

• People generally desire to build cash value in tax advantaged accounts.  The advantage is the cost of insurance is very low due to the child being very young.  This combined with the many years the child has ahead of them is a perfect recipe for a large cash value balance when they get older.

• It’s a Savings account.  Most of the time we are advised to save in an account that we have very little access to.  Such as a 401k, annuity, or an IRA which we can’t touch until we are 59 ½.  With a whole life policy for example you can withdraw and put back into your  account with ease and no age restrictions.  Finally, the ability to earn SAFELY around 5% in a whole life plan or even 6-7% in an indexed universal life policy can be very attractive to most people.

• Devastating Loss.  Most people know the general concept of a life insurance policy at its core.  If someone passes the beneficiary gets a lump sum payout.  One thing to consider although not a fun thought is as a parent, if something were to happen to your child, how fast would you be able to go back to work?  Or function the way you used to.  Eliminating the financial stress of the matter can help alleviate, just a tad, a very stressful time.

• Locking in “Great Health”  Most kids are generally very healthy.  As they get older and even have kids, they will have a plan already in place that they can use to protect their own families.  The ability to already be insured protects against the risk of them getting sick and then becoming un-insurable themselves.

We have you covered when it comes to your child’s or grandchild’s cash-value life Insurance plan at  The Ascension Group.   Call us at (214)277-9497 or (800) 310-4135   for a consultation with one of our life insurance agents today!