Do you know any parents who lavish their children with gifts, mostly material items like toys and electronics? How about grandparents with their grandchildren? As doting relatives, many of us are guilty of this. Now, “guilty” might be too forceful a word because there is nothing inherently wrong with giving loved ones what they desire. But looking at this from a different perspective, I believe most parents and grandparents would agree that caring for their loved ones’ future is significantly more important.
Think back to the last toy, latte or video game you bought for your child ... how much was it? Imagine putting that transaction toward their future. A juvenile life insurance policy does not have to be an uncomfortable topic, because it provides for your children’s future as a living benefit. These policies are affordable (less than a video game!), and they are financial planning tools.
Many young adults do not think about life insurance until they get married, buy a house or have children. By then, two considerations will have occurred as time passes from when they were kids: The cost of insurance rises with inflation, and life insurance premiums increase every progressive year for adults. The third consideration will hopefully not happen, but sometimes individuals develop health conditions and illnesses. These factors adversely affect life insurance rates.
How does one mitigate this? Setting up a juvenile whole life insurance policy as soon as possible will guarantee the insured life insurance for the rest of their life (provided the premiums are paid) and at the premium amount established at policy inception. You are locking in a low rate for them as they grow up into adulthood, and they can eventually take over premium payments.
Also, many different policies work as financial planning vehicles, as mentioned, either by guaranteeing a rate of return like a savings account or an interest rate predicated on the stock market, like a mutual fund. For example, AAA Minneapolis has seen clients borrow from the cash accumulation account to pay for college textbooks or a down payment on a vehicle.
So, the next time you buy your child, grandchild, nephew or niece a Nerf Blaster or Roblox credit, consider investing in their future and the lives of their children instead.
Looking to save on your life insurance coverage? A health screening is a critical part of the application process that can help you get your best rate.
As we grow and change, the choices we make in life often mirror our needs. Your financial protection needs work much in the same way. What you need in your 20s is not likely to match what you need in your 40s, which will further evolve as you approach your 60s and beyond. Luckily, AAA Life has solutions for you every step of the way.
Did you recently tie the knot? Or maybe the big day is fast approaching. It isn’t uncommon for couples to spend a great deal of time and energy planning for their wedding day. What’s more rare is the likelihood that couples put time and energy into discussing their financial future and how to approach finances in their marriage.
There’s no one-size-fits-all solution when looking at the needs of Generation X and their life insurance policies. Whether you’re planning to retire in the next few years, still have kids living in the house with years of college tuition checks still to come, or anything in between, now is the best time to act to help protect the futures of those that you care about.
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