People with children and grandchildren often love to shower them with gifts. What if you could provide a gift for your client’s children that could last a lifetime? One that could provide a financial benefit many times greater than the original cost, and that could in turn benefit their own children, all on a guaranteed basis?
That gift is life insurance, and you have the power to help your clients realize the value of purchasing this valuable gift for their children.
A cash-value life policy taken out on a minor could reap powerful benefits for a family. The cost is typically extremely low compared to the face amount, and yet both the premium and benefit can be guaranteed for life. When the minor reaches adulthood, the policy can be gifted to them.
Here are some of the advantages of encouraging your client to purchase life insurance policies for their young children.
- Lowest possible pricing. This gift works very well for boys and girls aged newborn to 20. Attractive pricing can be available even for children who have medical conditions. The children can lock into the very low pricing available at young ages, and yet the price can never increase.
- Insurability secured. If the children develop medical conditions later in life, or take on high-risk hobbies such as scuba diving or mountain climbing, the client won’t have to worry about going to market and paying a higher rate – or possibly getting declined altogether.
- Significant cash values. A large amount of cash can accumulate over time for use as a mortgage down payment, business capital, or retirement supplement. If your client buys the policy when their child is very young, there is plenty of time for the cash to accumulate into a truly valuable gift for the child.
- Limited payments. The product could be designed to receive just one single payment, or payments for a set amount of years.
- Increasing coverage. With the right product, the survivor benefit can increase over time.
Purchasing policies for adult children
What about adult children? Is it a good idea for an elder parent to own, or pay for, life insurance on an adult child?