Whole Life Insurance – The Gift that Keeps on Giving
Are you looking for the perfect gift for your grandchildren this year? These days, many people are giving presents that are more than brown paper packages tied up with string. Experiences and other alternatives top the list of parent-preferred gifts. While it may not be on their list (because they don’t yet know what it is), a whole life insurance policy can help give the people you love some financial security for years to come.
Whole life insurance policies have cash value that can grow over time. Imagine this: 25 years from now, your infant grandchild could be putting a down payment on a house with the money from the policy you purchase this year. Or, your gift this holiday season could help them graduate from college without a single student loan to worry about.
How to Gift a Life Insurance Policy
There are two ways to gift a whole life insurance policy. The first is by naming the recipient your beneficiary, which is the person who receives the benefits when you pass. Or, you can purchase a policy for them.
If you choose to purchase a whole life policy for someone, it works like this:
- You pay the premiums for 10 or 20 years (or whatever time frame you decide). The premiums you pay will be based on various factors, like the amount of coverage and the child’s age and health.
- Then, at a certain age, the recipient becomes the owner of the policy. All of the cash value is then for the recipient.
Your grandkids outgrow clothes almost yearly and there is always a cool new toy, but this gift helps protect their long-term future.
Should You Gift a Whole Life Insurance Policy?
Life insurance premiums are typically lower for younger children, so if you have small grandchildren, a whole life insurance policy might be a good option.
Some financial peace of mind may not be a gift that your child or grandchild understands at the time, but one day they might have financial security because of your thoughtfulness now.
Insurance products and services are offered by Mutual of Omaha Insurance Company or one of its affiliates. Home Office: 3300 Mutual of Omaha Plaza, Omaha, NE 68175. Mutual of Omaha Insurance Company is licensed nationwide. United of Omaha Life Insurance Company is licensed nationwide, except New York. United World Life Insurance Company is licensed nationwide except Connecticut, New York and the Virgin Islands. Companion Life Insurance Company, Hauppauge, NY 11788-2934, is licensed in New York. Omaha Insurance Company is licensed in all states except: AL, CA, CO, ID, IL, LA, NV, NH, NY, NC, PR, RI, VT, VI, and WI. Products not available in all states. Each underwriting company is solely responsible for its own contractual and financial obligations.