Child Savings and Life Insurance
Would you like to start a savings account for your child? Would you like to have something to pass on to them when they get ready to leave the nest? A Universal Life Insurance Policy can be just the thing to benefit both you and your children.
Here’s why:
One of the first advantages of opening a Universal life insurance policy for a child is that the insurance cost is favorably low. Most children can receive policies in the amount of ,000 or more for less than per month. This is not term insurance it is permanent. In the case your child were to pass away the death benefit goes to you to ensure financial protection. Yet there are many advantages to him/her by using the insurance as a form of savings account.
Universal Life Insurance in its nature has a cash value account that grows right beside the bucket of insurance as time passes and premiums are paid. The investment is at its best due to the young age of the insured. These moneys are accessible tax free and have no age restriction for drawing on the account. Surrender penalties are on a sliding scale that will usually be at zero by year 15 of the policy. Just about the time your child is ready to make some of the larger purchases in his/her life, you as the parent can’t grant them ownership of the policy.
Your child will see first hand what a good savings plan can do over time. He or she will then be in control to make future decisions for the money such as using it to buy a car or house, college tuition, or possibly they want to roll the funds over into a non-qualified IRA account. Of course they also have the decision to just continue funding the policy and watch the account grow just as you did for them.
You see a Universal Life Insurance policy for a young person can be a very valuable asset and a very valuable lesson in saving money. Should you examine this for your family? Contact us in order that we may set up an appointment to begin this discussion with you. We have programs of all types and are ready to match a plan to your comfort level and time horizon.
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