Grandchildren Are the Best!

The holidays just seem better with little ones running around. The hustle and bustle and magic of the season can move even the Grinch to a smile. If you’re like me, you spend hours and
sometimes way too much money finding everything on their lists just to see their faces light up with joy on Christmas morning. There’s one gift they never include on their lists and might not
put a smile on their faces but may be the best gift I have ever given them.

If you have grandchildren, you need to know how to protect these little guys… even after you are gone. This is NOT where you stop reading. This is where you sit up, adjust your glasses, and pay close attention. I bought my grandchildren life insurance policies for Christmas. Why in the world would I do that? I have 5 VERY good reasons.

1) At ages 10 and 13, they are insurable. That’s right. They are young, healthy, vibrant little lives that cost pennies per day to insure. I had a client lash out at me recently, “I could never
financially benefit from the death of my child”. I’m not asking you to do that. Giving the gift of life insurance while they are young ensures they will have coverage at an affordable rate when
they are older and have families of their own regardless of their health condition.

2) You no longer must die to receive benefits from your life insurance policy. Read that again. I bought my grandchildren the “new” kind of life insurance. Their policies come with an
Accelerated Benefit Rider that advances a portion of the death benefit income tax-free while you are alive for Chronic, Critical, and Terminal Illnesses. This rider is simply amazing. Medical
bills? No problem! The game has changed folks. And in case you’re wondering, this rider is not limited to policies for children only. Accelerated benefits come on most all new policies
regardless of age. Go to and select Life Insurance to learn more.

3) I can use their policies as College Savings Plans. I don’t like prepaid tuition plans. To be honest, I don’t like to pre-pay anything. The thought of someone else making money on my
money doesn’t sit well with me. Besides, I don’t want to limit where the kids can go to school. They may receive a scholarship, or they may decide college is not for them. Flexibility is key
with me. Contributing extra money over time to the savings account portion of their life insurance policies allows me to accumulate cash tax-free to use for college.

4) I can use the cash in their policies to buy them a car, pay for a wedding or a home, and generate retirement income all of which are income tax-free. There is no end to what they can
use the savings account portion of their policies for. I don’t like custodial accounts. Once a child is no longer a minor (age 18-21 depending upon the state of residence), they gain control of the
asset and can spend the money any way they choose. By overfunding their life insurance policies, I decide when to release control of the asset.

5) Legacy. The gift of Life Insurance will keep giving long after I am gone. I have handwritten a letter to each of my little guys to read after I am gone. I explain to them how their policies work and why I purchased them when I did. I encourage them to use the money wisely as it can provide for them and future generations if managed properly. An investment of $250/month over 10 years for a 4-year-old makes them a millionaire at age 70 and generates over $85,000 per year in tax-free income all while providing access to more than $500,000 in death benefit should they become sick, injured, or experience an untimely death.

Life Insurance: Simply the best Christmas present I’ve ever purchased.