Gifts of a Lifetime (lifehappens.org)
I like to call them gifts of a lifetime. After I made sure my own financial plans were in order many years ago, I bought two small whole life policies for my two daughters. I recently carried the tradition on with my grandchildren.
Such insurance purchases are gaining some attention during these volatile economic times, notes Jilian Mincer in a recent Getting Personal column for Dow Jones Adviser, entitled “More People Buying Life Insurance For Children.”
Why the uptick? The reason is simple: a whole life policy that builds cash value is a way to provide a solid financial foundation for your children and/or grandchildren while simultaneously locking in life insurance coverage for their entire life. Buying whole life for my grandchildren allows me to expose them to one of many prudent options in someone’s financial toolkit. It is by no means their only financial tool, but it makes sense to use the living benefits that a protection product like whole life insurance offers. The cash value that accumulates in a whole life policy can be used for college tuition, a mortgage on a first home, or a nest egg for a grandchild’s own retirement. Importantly, it also provides a death benefit for their families if a tragedy should occur.
By securing policies for my grandchildren, my wife and I know that when we are no longer around, our grandchildren, and potentially even their children, will carry a little piece of us with them as they build their own financial future for their families. For a few dollars a month, I am leaving a legacy, and that’s a gift I will always be proud to give.
Ronald B. Lee, CLU, ChFC, CLTC, is a co-general agent of Lee Nolan Associates LLC, a general agency of the Massachusetts Mutual Life Insurance Company (MassMutual).
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