A Gift of Life Insurance

Many people think of life insurance as a way to protect their family from the loss of income in the event of the main provider’s death. However, an index universal life insurance policy purchased on the life of a young child can also be a useful financial tool for the child’s future.

This sales idea is for financially secure seniors who have accumulated substantial assets. They have appropriate amounts of life insurance on themselves and have a desire to leave a legacy for their grandchildren, helping them pay for college and other events throughout their lives.

Establishing a life insurance policy today, through a series of gifted premium payments, can provide grandchildren not only with a valuable death benefit that can last throughout their lifetime, but it may also provide for additional educational and financial opportunities. The tax deferred savings that accumulates within the policy can be accessed for various purposes including a college education, business opportunity, or a down payment on a home. The cash value can also help supplement retirement income when the grandchild reaches retirement age. If the policy stays in force, the grandchild won’t owe taxes on the loans.