‘Tis The Giving Season

‘Tis The Giving Season

by Richard S. Bernstein on Dec 15, 2017

By: Richard S. Bernstein, CEO Richard S. Bernstein & Associates, Inc.

As the holidays approach, now is a good time to think about gifts that go above and beyond for our loved ones. Throughout your lifetime there are many gifts you will buy for your children and grandchildren. Toys and clothes will be purchased, but those will wear out or be outgrown year after year.  

However, there is a substantial gift that you can secure for your child and/or grandchild that they will be able to appreciate and utilize in the future. The gift of whole life insurance can have a lifetime impact on the lives of your loved ones. In this article, we’ll discuss how you can give a gift that can help establish a foundation for a generation of financial security.  

  • A whole life insurance policy can provide basic life insurance coverage for children, and will build cash value over time.
  • The cash value grows on a tax-favored basis, and under current law, any cash values that accumulate in the policy are tax-deferred.
  • The cash value or death benefit accrued from a whole life insurance policy is a financial resource that can be used to help pay for college, a wedding, or a down payment on a home. It is an appealing gift to give to a young married couple who are just starting out and can provide them with added security when starting a family.
  • You can choose the premium and/or face amount that best meets your needs. With the purchase of a whole life insurance policy, the rate will be fixed for the insured’s life.
  • Additionally, whole life insurance is creditor resistant, as long as you’re not involved in a lawsuit at the time of purchase in the state of Florida.

A uniquely designed life insurance program insuring your child or grandchild can be a significant financial asset for them during their lifetime. Not only will it provide their family with much needed financial protection, but they can also use it as collateral for a home or loan. For example, if you deposited $10,000 for 10 years to buy a paid-up life insurance policy on a 10-year-old, the projected cash value at their age 65 would be $1,472,000 and is guaranteed to be at least $420,393. What a great way to help an heir secure their retirement or other finical need during their lifetime.

Consider the gift of whole life insurance for your children, or grandchildren, as it can be one of the longest lasting gifts they may ever receive. It is a personal asset that should be one of the cornerstones of their financial success and stability.

Questions, Comments, Concerns? Speak with one of our experienced insurance planning advisors today, to discuss how a whole life insurance policy may benefit your children or grandchildren.