Gifting Life Insurance to Grandchildren

Gifting Life Insurance to Grandchildren

| August 26, 2021

Grandchildren can be one of the great rewards of life. The older generation has more stability and experience. Some want to ensure that their grandchildren have a solid start towards a strong financial future. The gift of a life insurance policy may be a very wise gift.


Whole life Insurance provides death benefit protection, creates a living legacy that will accumulate cash value and may help provide financial stability for their future. As long as you pay the premiums the policy will continue to increase.


Life insurance policies accumulate cash value each year. That cash value can be borrowed against for things like a down payment on their first home, to help pay for college or even for retirement. 


Don’t forget about tax advantages. The cash value that accumulates from the policy is tax deferred. Even when you borrow against the cash value, there are no tax consequences. 


Insurance for the future. 


The rates you pay for premiums on a child are generally very low. Check with your agent to see if these premiums can be locked in for life. The question of insurability can also be taken care of. If a child has had the insurance coverage it cannot be cancelled. There is a rider available (policy purchase option rider) that allows the insured to increase coverage, regardless of insurability.


When you have insured a minor, grandchild or child, the policy remains under ownership of  the purchasing adult. After the child reaches legal age the policy can be transferred to them. 


Contact Crunelle Insurance Agency to purchase this most valuable gift for the little ones in your life.