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My kids love presents. You see their eyes light up every time Christmas comes or it’s another birthday. They are even happiest when they get something new from the store! Funny thing is, over time, if you ask me what Joshua or Lukas got for their birthdays a few years ago, I couldn’t tell you (Not sure if they can either).
We all want to make sure our kids get a head start in life. Especially this day and age, is saving for part of their future education enough? There is one gift however that I know your kids will cherish for the rest of their lives and allow them the freedom of choice and a solid foundation to start with.
It is something many people don’t think of but the investment of a whole life insurance policy is something that can benefit our children immensely. When I first discuss this with friends and clients, the initial reaction is usually one of surprise and they wonder why I would even talk about doing such a thing. I explain that I am aware that initially, a conversation about a life insurance policy for a child can feel morbid at the least, however once someone has the opportunity to hear about how they work, they quickly see that the power of this product is tremendous.
Among the many benefits this strategy has to offer, it…
- Helps protects those we love – our children, and their future families.
- It shows the power of compounding and patience of consistent investing.
- It allows a parent or grandparent to give a financial present that is about caring and responsibility for others.
- At a time when parents wonder about how to ensure their wealth is a constructive and not destructive force in their children’s or grandchildren’s lives, this financial gift is one to consider.
It’s the only financial vehicle available that allows parents to build up funds for any future use on a tax-sheltered basis where they can retain complete control of the plan until they decide (if ever) to transfer ownership to the next generation (or multiple generations, which I will explain on another post). When parents or grandparents are ready, they can do so without triggering any negative tax consequences. It may not be wrapped up and they may not see it until they grow up, but I when we explain this to them, they are in for the surprise of their lives!