As the children in your life look forward to this upcoming season of giving, a whole life insurance policy probably isn’t something at the top of their list. Or at the bottom of their list. Or even on their radar at all. However, consider how a whole life insurance policy may benefit your children or grandchildren in the years to come.
- Coverage – Whole life policies for young children are very affordable, and, in most cases, once a policy is in place, the monthly premium does not vary for the life of the insured, and cannot be cancelled in the event of serious illness or disability.
- Death Benefits – With most whole life insurance policies, the named beneficiary receives a payment. By paying the premiums on a policy that covers a child, you could potentially provide for other family members, should a tragedy occur.
- Cash Value – Some whole life polices accrue cash value over time. As you continue to pay premiums for that child over the child’s lifetime, dividends may be borrowed against or may be allowed to grow tax-deferred. It is this benefit that may come into play during your child’s retirement planning.
We sincerely hope the children in your life find something amazing under their tree this year! But during this season of giving, don’t forget to sit back and reflect on the importance of taking care of those children, protecting their future from potential financial tragedy, and providing a tangible amount of security for their future, even if you can’t be there. For more information about choosing just the right type of life insurance that will meet your needs contact us.