Whole life is one of the most common types of life insurance, and like other types of life insurance, it provides financial protection in the event of the insured’s death. The purpose of whole life insurance is to provide permanent coverage, so these polices can last for the life of the insured as long as premium payments are made.
Whole life policies are different from term life polices in several ways. Two of the key benefits of a whole life insurance policy are that the death benefits are guaranteed and these policies build a cash value over time, which can be borrowed against or withdrawn by the policyholder. Also, whole life insurance premiums do not change for the life of the policy, but they are typically higher than term life premiums for most policyholders.
By purchasing a whole life policy as an investment, you are purchasing a valuable gift for your child or grandchild.
By purchasing a whole life policy as an investment, you are purchasing a valuable gift for your child or grandchild. By sparking the interest and awareness of accruing money, a whole life policy can become a vehicle for teaching young children about the importance of financial responsibility. For example, a whole life insurance policy can help children to learn about the terminology of finances such as tax-deferred savings, as benefits are paid free of federal income tax. There are additional advantages that older children will gain by being the beneficiaries of children’s whole life insurance policies. For example, they may decide they could use the policy proceeds to help defray some of their future educational expenses or even to pay future policy premiums.
The purchase of an affordable children’s whole life insurance policy is worth considering as a gift idea for a new baby. First of all, when a child is very young, the premiums are very inexpensive. If the unthinkable occurs, and the child experiences any type of serious illness, the coverage will already be in place. Moreover, their benefits will never be reduced or canceled regardless of changes in age, health or occupation as long as the premiums are paid on time. Therefore, the gift you are giving your loved ones, while they are still too young to understand, will eventually become a gift of protection for their own families. In this way, insured young adults will realize tangible emotional and financial benefits.
A gift like this will never become obsolete, discarded or given to strangers, along with all the outgrown clothes and toys. As your children or grandchildren mature, they will gain the understanding that when you purchased a children’s whole life insurance policy for their benefit, you were demonstrating deep care and concern for their future welfare.
Do you fully understand the importance of Whole Life Insurance? If not, you could be missing out on valuable information that may benefit your family.
Insurance is not only a great way to protect those you love and provide for your family. Over time, it becomes a very worthwhile investment.
Today you can find offers all the time about life insurance for kids and there are many opinions for and against buying it.
Economic and social changes in the last thirty years have made it more common for grandparents to raise their own grandchildren.
*$1 pays for the first month of children’s coverage. Then the rate is based on your child’s present age and is guaranteed to stay the same for the rest of their life. Click here for full schedule. Policy Form # GWL2001 or GWLA001
*$1 pays for the first month’s adult coverage. Then the rate schedule is based on your current age and is guaranteed for the life of the policy. Click here for full schedule. Policy Form # SRTCV/SRTCV R13/SRTCV90MA/SRTCV R17. Offer may vary.
**A.M. Best Company rating as of 8/23 based on financial strength, management skill and integrity. For the latest rating, access www.ambest.com.
Globe Life is the marketing name for Globe Life Inc. and its subsidiaries. Product availability and features vary by state and subsidiary. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Globe Life is rated A (Excellent)** by A.M. Best Company based on their latest analysis of Globe Life's financial strength, management skills and integrity. (rating as of 8/23)
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