From giving gadgets to tickets to your child’s favorite concert or trip, you must have tens of options running simultaneously in your mind about the gifts you can give to your loved ones.
One such out-of-the-box idea is to give your family life insurance as a gift. If you think about it, you’ll realize that gift cards and expensive cell phones can only go so far in life.
Giving life insurance as a gift is not a traditional gift, but it is the most beneficial gift you can give to your child or partner. Here are some reasons to gift life insurance to your loved ones.
A sensible and practical idea
Giving someone life insurance may seem like a beneficial gift – and it is. It is a sincere way to express your concern for your children when they are ready to inherit the policy in the future.
The toys, clothes and everything you gift your loved ones will wither with time. By providing insurance, you will also instill in them the value of financial responsibility with something that can one day help protect your families and finance their life̵7;s significant events.
Life insurance premiums are cheaper for children
The life insurance premium is determined by several factors, such as an individual’s age and health. Children usually pay low premiums because they are young and healthy. Your children may not be able to qualify for certain life insurance as they get older or if their health conditions change in the future.
Once the child reaches a certain age, your policy may allow them to purchase more cover (for a fee) depending on your chosen options. Some life insurance policies also have the potential to earn bonuses that can help your children gain cash value over time.
It helps you provide money for their future
A life policy owner can access the cash value, which increases over time. Your children or partner can use some of that money to help with college expenses, a wedding budget, or perhaps a down payment on a home.
Depending on the type and amount of insurance you purchase for them, they may be able to use their life insurance for multiple purposes. It is also important to realize that any payouts will reduce the policy’s cash value and death benefit.
You want nothing more than a bright future for your child and your family. By purchasing life insurance, you can protect yourself against a time when their ability to insure may be called into question. Many illnesses can prevent someone from qualifying for life insurance.
By purchasing life insurance when a child is still young, you ensure coverage before a serious condition manifests itself.
When choosing life insurance for your children or partner, there are many options. For professional advice, speak to a financial expert who can assess your circumstances and guide you through the choices available.
Our experts at Abbate Insurance will consider your needs and financial obligations before suggesting which policy you should choose. Contact us today to make your policy process hassle-free!