Life Insurance for Grandchildren — the secret of eternal life
The idea of Life Insurance for Grandchildren is a caring and thoughtful act. Poetically, it is “the secret of eternal life” as your caring act will likely be talked about for generations and promote a loving legacy tradition.
If you have insurable interest in a person, you can purchase a life insurance policy. In other words, you can be a Grandparent without guardianship and purchase a policy.
When a grandparent is looking at making a loving act like considering Life Insurance for Grandchildren, you are best to consider several options and future needs to find the best life insurance options for children.
If you are a Grandparent looking at ways to support your “consentidos” or your parents are considering policy for your children, Here are some simple ideas to help you understand your options and important acknowledgements to consider.
Tips for Grandparents
- Make sure the parents have proper insurance in place. This is normally an easy low cost solution for young healthy parents. Solve for the need, not the cash value.
- Understand and compare the other savings options such as College 529 plans and the like. While are superior in every way to life insurance, you are best to know that they are a great option to weigh into the conversation.
- Life Insurance cash value is not considered a factor in the Financial Aid Process, which might make this a favorable college planning tool for families with high middle income households.
- Consider the need for insurance.
- If it is for burial expenses, consider a child rider or a 10 pay or 20 pay policy. If your goal is to make sure that expenses related to a death are paid for regardless of age., solve for burial expenses and include inflationary costs. 10 pay or 20 pay is a payment method which fully funds the policy at the end of the 10 years or 20 years. Thus, the policy can given to the grandchild as a fully paid policy and not a monthly expense like the Gerber Grow Up Plan that they will need to be responsible to keep.
- For College, consider the amount of cash value you want to have at that future date.
- Expect the worst, hope for the best
- Guaranteed cash value is what you need to bank on.
- Hypothetical Value is not worth holding your breath over if you are expecting large returns. That’s just not how they work. Most of the time.
- The possibility of higher returns is great, but an unknown equation you can not bank on.
- If the policy is designed to be a source of cash value, understand that the policy has a good chance at lapsing if certain conditions (such as loan repayment) are not met. There may also be tax considerations.
- Solving for the need
- Burial expense can range from 10k to 50k if you include possible additional expenses such as medical bills, emergency transport fees, bereavement, and loss time at work for you or the parents. We talk more about this in burial life insurance for children.
- Consider future insurability need where your grandchild might not qualify for insurance. Here is a list of a few reasons to consider life insurance for grandchildren to secure future insurability.
- Medical denial due to hereditary illness
- Children who may join the military who come back uninsurable due to challenges like golf war syndrome, PTSD, Agent Orange, and the like
- Regardless of cause, it is a gift to their future family, and a benefit with increased coverage options
- Term insurance for children may be best way to solve for the need but make sure that the policy is convertible to a permanent policy.
- Team up with your grandchild’s parents through a Shared Dollar Life insurance plan. This is where you both agree to pay into the policy.
- Don’t let your experience define your purchase. The Baby Boom Generation transformed businesses like Harley Davidson and Gerber Baby food. You may have purchased a Gerber policy for you own child, but know that there are other options that should be considered and tested to see which one is better to fit your goals. I bet if Harley Davidson came out with a Life Insurance policy, that sucker would sell like hotcakes because people love their brand. Try to make your purchase for life insurance for grandchildren an agnostic purchase and position yourself so they compete for your business.
- Wright and video record your loving message. You might not be around for ever like Betty White. We can count on it! Making a video with your intentions for this life insurance policy can make a tremendous impact on your grand daughters life. Equally, it can be just as meaningful for you to promote your lasting love to your grandsons.
A Gift from the Grave
The reality is that you might not be around as a grandparent to see them benefit from your gift. Your grandchildren will always look up to you as their hero, teacher, and partner. Creating a loving caring gift now will be a gift from the grave. You will be gone, but your love… Eternal and bright!
You may also want to review best life insurance options for children if your grandchildren are young. As a grandparent, you are best to have a solid life insurance plan in place for your family, children and your grandchildren.
Wonder What life Insurance Solution is Best for your grandchild?
Feel welcome to reach out and ask us about solutions for Life Insurance for grandchildren. We do our best to respond to questions via email within 24 hours. While I can’t guarantee we’ll be able to help everyone, we do our best to at least get you the answers you need. We do this so you don’t make a long-term commitment to a complicated financial product you might later regret. Simply reach out to us or leave us a comment at http://lifeinsurancetoolkit.com/contact/
If you ever need to ask specific questions or need some one-on-one guidance (for free and with no pressure, of course), feel welcome to reach out by clicking here. We’d love to hear from you.
Jose, Hoser, Joe from the show