You want the very best for your family, including protection against all that could go wrong in life. When it comes to your grandchildren, wouldn’t it be great to provide them with a gift that offers that protection and continues to give for the rest of their lives?

Life insurance may seem like an odd choice. In fact, it may seem downright taboo. However, there are many reasons it may just be an ideal gift that leaves a lasting legacy.

It works as an investment

Because the cash value in a whole life policy grows on a tax-advantaged basis, it has a history of providing solid returns and is a stable investment option. This cash value is accessible for withdrawals or a policy loan. When the time comes, the child can use it for education, to help purchase a home or for other needs.

It protects insurability

We hope our family members stay healthy and happy forever. If, however, a child develops a medical condition, it could prevent them from getting life insurance in the future. If a life insurance policy is purchased while they are healthy, it lasts for life without having to provide additional medical evidence. There is also an optional rider that will allow them to purchase additional insurance coverage as they get older, despite a medical condition that would otherwise leave them uninsurable.

It provides for the family

While you hope the death benefit is never needed, if the unthinkable happens, family members will need a safety net so they can get back on their feet and find the help they need to manage their grief. Proceeds from the policy can also help cover the sizable costs for final expenses, such as a funeral or memorial service.

It helps with estate planning

If you plan to pass on some of your wealth to your grandchildren as an inheritance, a child life insurance policy has several advantages.

Unlike portfolio investments or regular savings, life insurance proceeds are paid tax-free to beneficiaries and there is no tax on the increase in the cash value of the policy. Plus, you can maximize that tax-advantaged growth by making additional deposits above the required premiums of the initial policy.

The cost is reasonable

Premiums for children are affordable and guaranteed, despite later lifestyle or career choices.

For example, Equitable Life’s Equimax 20 Pay option provides whole life coverage that’s paid-up in 20 years. With level premiums and an increasing cash value, children can have coverage in the future and a source of cash if needed. The addition of a Flexible Guaranteed Insurability Option rider guarantees them the right to purchase additional insurance in future, without having to provide evidence of insurability.

Talk to an advisor and find out how you can give a gift that protects them for life.


This article is for informational purposes only and is not intended to be legal, tax, investment or other professional advice.  Readers should consult a professional regarding their individual circumstances before making decisions or taking action.