Life Insurance for Grandchildren
Laying the Foundation for a Grandchild’s Future with a Gift that 
Lasts a Lifetime. The joy on a young grandchild’s face when he or she opens a present from Grandma and Grandpa can be priceless, even if the gift is sure to be short-lived and soon forgotten. In today’s world of immediate gratification, where needs and wants rarely go unmet, gift giving can be a challenge for grandparents. The financial value of a lifetime of birthday and holiday presents can be substantial.
Looking to the Future
When grandchildren are young, it can be difficult to imagine them as adults with families of their own, even if it is likely to become a reality one day. The time it takes for a grandchild to go from taking his first steps to walking down the aisle can seem to pass in the blink of an eye.
As adults, the most cherished memories grandchildren will have of their grandparents will be of the times spent together, the stories told and the lessons learned from Grandma and Grandpa, more so than the presents they received.
The gift to a grandchild of a “cash value” permanent life insurance policy can last a lifetime and be an important part of a grandchild’s financial future.
Giving “Outside the Box”
Grandparents have an opportunity to leave a legacy with their grandchildren through the gift of permanent life insurance. Permanent life insurance can provide a “safety net” of financial security and protection in a way no other financial instrument can.
Some people may be uncomfortable with the idea of purchasing permanent life insurance on a child. Taking a closer look at the long-term benefits to the grandchild makes it clear why this financial instrument is a worthwhile option.
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Some advantages of purchasing life insurance on a young child include:
- The premium of a permanent life insurance policy is substantially lower for a policy that insures a child than for one which insures an adult.
- The grandchild is guaranteed the ability to have permanent life insurance protection for his or her future family regardless of any changes in health down the road.
In addition to providing insurance protection, permanent life insurance offers a wider range of options and flexibility than many other financial tools.
It provides:
- A low-risk means of creating a financial asset which grows tax-deferred.
- A financial resource which can be used to help pay for a grandchild's education expenses without affecting eligibility for financial aid.
- A source of cash value which, if not needed for education purposes, can be used for anything a grandchild may need down the road such as a first car, wedding, down payment on a first home or even starting a business
In many cases, grandparents take out a permanent life insurance policy on their grandchild, name the parent as owner and beneficiary and pay the premium each year. This approach gives the parent control of the policy and the option to eventually transfer ownership of the policy to the grandchild after he or she becomes an adult.
While you may not find “life insurance” on a grandchild’s wish list, the lifetime of financial protection and security a permanent life insurance policy can provide someday may be more than he or she could have ever hoped for. We have heard many clients praise and appreciate the fact that their grandparent bought inexpensive life insurance for them. Please request a free quote and ask as many questions as you need to. Answers are fast and free.
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