Life insurance policies for children & grandchildren can be some of the best investments you ever make for your family's legacy and future.

As a parent/grandparent, you want your children/grandchildren to take smart steps in life. Why not lead by example? Help them to take the smart steps today by investing in their future at an early age.

Whenever I mention the idea of buying a life insurance policy for a child, I am almost always met with looks of bewilderment and awe. No one ever wants to think of their child or grandchild’s death. I’m a father, and I understand that the same as anyone else. What life insurance and critical illness insurance policies for children are, is smart investment opportunities. Paying into a Whole Life Insurance plan for a child is not done for the same reason that we, as adults, get life insurance on ourselves.

There are many benefits to investing in a whole life insurance policy for your child or your grandchild.

  • You can start this plan for your child/grandchild as early as 14 days after birth
  • As parents/grandparents, you control the use of the plan’s cash value even after transferring to your child/grandchild
  • Cash values can be used by your child/grandchild for any financial need in their lifetime, such as, education, down payment on their first home, starting a business or even provide financial security for their own future family.
  • Cash values can be used for any university or vocational program around the world
  • The child/grandchild will be permanently covered for the duration of their life
  • The plan will be permanently funded after 20 years and no further payment will be required by the policy holder (aka. Parent/grandparent)
  • As the policy holder (i.e., the parent or grandparent), you can use the annual dividends towards the annual deposits
  • The plan earns annual tax-free dividends throughout your child/grandchild’s life from the day it is opened
  • It allows you to transfer wealth to future generations, tax-free
  • After 20 years of payments, the fully paid-up permanent life insurance values grow throughout your child/grandchild’s life, from the day the policy is opened
  • Once your child/grandchild is old enough, you may transfer ownership of the policy tax-free/fee-free at any time  

By making this investment, you will provide financial protection for your child/grandchild and support them for when the time comes for them to start their post-secondary education, buy their first home, get married, have their own children and even plan for their own retirement. Whatever the case may be, this plan will be there to assist them.

This is a start of a legacy for generations to come.

About the Author

Peter Graceffa is an Insurance Broker at Graceffa Insurance Group. He is also one of Viive Planning’s Trusted Partners. As a father of two young children, he is motivated to showcase the benefits of early planning and investing in insurance policies, no matter your age. He can be reached at 905-902-5188 or for more information or Viive would be happy to make an introduction for you.

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