A Cash Value Life Insurance Policy Makes for a Great Gift for your Grandchild
Purchasing a life insurance policy is not the first thing that comes to mind when welcoming the arrival of your new grandchild. As you are looking in the store for a cute and cuddly stuffed animal; you may want to consider purchasing a cash value life insurance policy to go along with that adorable giraffe.
You may think of a life insurance policy as a boring gift or that perhaps you are having morbid thoughts, but this is not the case. Look at giving a cash value life insurance policy as a joint gift. This will give peace of mind for the parents and a life insurance policy already in-force when the child becomes an adult.
Life is uncertain and as much as we want our grandchildren to grow and prosper; life can throw us a curve ball. Perhaps when the child is a teenager they could develop a serious illness. When they apply for a life insurance policy when they are an adult, they may find the premiums high or they are uninsurable due to their illness. Having a life insurance policy in-force as an infant would ensure them guaranteed life insurance as an adult.
The premium for a cash value insurance policy will be fixed for the life of the policy. There is no need to consider inflation and market rates. This policy will provide your grandchild with affordable life insurance into their adulthood.
In addition, the policy will also accumulate cash value. The cash value will continue to grow every year. A whole life insurance policy could be a source of funds to help with college tuition. A loan can be taken out on the cash value to help cover costs for college. If you do not pay back the loan, the face amount of your policy would be reduced. If you do pay back the loan, you are replacing the cash value that you withdrew and the face amount of your policy will not be decreased.
About the author: Teri Costen has been in the life insurance business for over 20 years. She is a mother of three who enjoys working out, taking aerobic kickboxing classes, and making stained glass. Teri believes that finding the right life insurance policy helps protect your family and loved ones. You can contact Teri at 1-800-651-1953 or TCosten@Pivot.com.