Life insurance for kids? Why do they need a Juvenile Policy? After all, they’re not planning on dying or need to secure someone or even their assets.
Well, generally no, but there can be exceptions. As they usually are to every rule. However, besides the obvious, setting up a life insurance policy for children has many other benefits, than just the obvious. The number one smart thing about getting a Juvenile Policy for your kids is to help them get started in life. A life insurance policy will teach them sound principles of long term planning. A simple monthly payment will truly multiply thanks to compound interest.
The insurability factor of a Juvenile Policy
Secondarily, the easiest time to get a life insurance policy in childhood. Juvenile Policy secures insurability for as long as the policy stays in force. Many people start seriously thinking about a life insurance policy after their first heart attack. At that point it becomes very difficult to be insurable at a decent rate. Most companies will actually not want to insure you at all. However, if you have a Juvenile Policy, then it is one less thing to worry about later in your life.
Your child’s money grows tax deferred in such a policy. Using your cash value in the form of a policy loan, which you later repay allows you to benefit from the accrued interest and dividends tax free. Loans are not considered income and a policy loan does lower the potential death benefit payout, but does not effect the cash value growth. Most insurance companies will allow your policy to grow according to original schedule.
Let’s help your kids get ready for adulthood the proper way. Give us a call and let’s set them up with a Whole Life Policy.