When I am in a planning meeting with you; and trying to get all of the facts together about your financial situation so that I can make some insurance and investment recommendations , often the question arises “have you ever considered life insurance for your kids?”
What kind of person would would want to put life insurance on their kids!! The answer? A smart one… Read on.
If you can look beyond the obvious fact that yes… you are placing a life insurance policy on your child, the benefits beyond just that basic life insurance protection can add up, and really fast! When your child is young, unless there are any serious health issues, they are typically approved for the insurance with just some basic questions asked. With many of our providers, you can purchase an insurance policy that will never increase in cost and even be completely paid up in 20 years!
In addition, Juvenile whole life policies can build up some seriously nice cash values, represented as “paid up additions” (PUA’s). Insurance cash value held within a whole life policy is cash over and above the death benefit that you can pass on to your child in a very tax effective way or to offset the cost of education savings perhaps.. Your choice.
In my opinion, one of the most important features of a Juvenile whole life insurance policy is called a Guaranteed Insurability Option (or in insurance lingo, a “GIO”). This can be added as a rider to any policy that can guarantee your child will have the ability to purchase in some cases up to $500,000 more of life insurance, with no medical evidence, at specific periods of time in the future. What if your child developed a condition that might prevent them from becoming insurable in the future? With a GIO, it doesn’t matter, the coverage is guaranteed.
So if not for the Guaranteed Insurability Option (or, GIO), cash values, cheap premiums that that will never increase, shortened payment periods and just all around awesome service from Precision Financial, I think this is something worth talking about – don’t you?
contact me or give me a call to discuss options! 306-242-9056. Feel free to check us out on Facebook as well! Precision financial is your local and trusted, Saskatoon financial advisor specializing in life insurance, health insurance, and comprehensive investment and financial planning.