Buying life insurance for grandchildren is just one way grandparents can help support a child’s financial future.
Having grandchildren for the first time is a thrilling time. You get to spoil and fawn over a new baby, but still sleep through the night. You get to have much of the fun and excitement without the tremendous life changes that come with having your first child.
As any good Grandma or Grandpa knows, though, being a parent and a grandparent isn't just candy, toys and cooing. Here's some helpful advice for first timers to help you (and your kids) be financially smart and prepare for your financial future and that of your first grandchild.
Update your will.
With a new life to protect and support, you may want to review your will to ensure that the newest addition to your family is part of your plan. Whether it's creating an inheritance or leaving behind a small token to remember you by, it's a logical time to re-evaluate something you probably haven't looked at in some time.
Consider a juvenile life insurance policy.
If you're interested in creating a nest egg for your little one, buying life insurance for your grandchildren can help you do just that, specifically a juvenile life insurance policy. These whole life insurance policies build cash value as your grandchildren grow. You'll act as policyholder until they reach the age of 21 at which time they'll become the policyholder. You can turn this policy in at any time to receive its full cash value, but your grandchildren also have the option to continue it past the age of 21. The premiums will never change in their lifetime and the cash value will continue to grow.
Buy life insurance for yourself & remind your kids to do it too.
Given that life insurance can help pay off a mortgage, cover death expenses and even help pay for a child's college tuition, you may agree that owning a life insurance policy as a new parent is crucial in helping to protect a young family. It's important to remind your kids how important that financial protection can be to their peace of mind.
In that same vein, owning a policy as a new grandparent is still a helpful way to financially protect your family. Even though you may own your house outright and have few other debts, a life insurance policy can still help pay for your funeral expenses or even provide a small inheritance to your grandchildren for their college tuition. Most of all, if your spouse or you assist in the daily supervision of your grandchildren, a life insurance policy can help ensure that they won't fall on hard times if that assistance is suddenly missing.
Of course, you should still focus on all the fun and milestones of your first grandchild, but, as with most life changes, a few good housekeeping tips can help you significantly in the long run.
If you're considering buying life insurance for grandchildren or for yourself, feel free to contact one of our agents or request a free quote online to start the process.
And if we haven't said it already, congratulations!