Last year, my wife Joanne and I became first-time grandparents. We fell in love with Jason at first sight! Like many grandparents out there, we wanted our grandson to be well taken care of even if we were no longer around to support him. My wife and I discussed leaving him something that would grow with him no matter what the future held.
Our conversation spurred us to explore whole life insurance options, an idea that had previously overwhelmed us. However, with several websites to educate us, we found buying whole life insurance unexpectedly easy, not to mention reassuring. I’ve decided to share what we’ve learned in case it helps other grandparents (and parents) have an easier time learning about whole life insurance and choosing the right plan for your family.
At the start of our journey, we knew just the basics: You buy life insurance so your children or grandchildren have a “parachute” if they ever need it. What we didn’t know is that, with whole life insurance, you can lock in lifelong coverage for your beneficiary at one unchanging premium. That’s why it’s an increasingly popular option compared to term life coverage, which can lose all its value after a certain period. Whole life insurance can truly last a lifetime.
We also learned that the premiums we’d pay could cost as little as a few cents per day. We liked this because, when Jason inherited our policy, chances would be he could easily afford it. But what if he couldn’t? It turns out that Jason wouldn’t have to start paying premiums until he turned 21, but he could instead choose to exchange the plan for its cash value.
That was another reassuring point. Each time we would pay premiums on a life insurance plan, we’d increase its cash value. This cash value would automatically double when Jason turned 18, but the plan’s premiums would remain unchanged. By the time Jason turned 21, our plan’s cash value would be substantial, but he could wait as long as he wanted to swap the plan for cash (or never exchange it at all).
Our whole life coverage would guarantee that Jason would have it no matter what happens 20, 30, 40, or more years down the line. If Jason was ever diagnosed with a chronic illness or entered into a dangerous profession, he may be denied coverage by a life insurance provider, leaving him out in the cold without any coverage. If we purchased whole life insurance for our new grandson, that very same plan is guaranteed quite literally for life. The premiums wouldn’t change, nor would the terms of coverage, no matter Jason’s life circumstances.
With this deeper knowledge of life insurance, Joanne and I felt more confident about buying whole life insurance for Jason. For a week or so, we discussed a few especially reassuring whole life insurance options before choosing a plan that we’ve really liked so far. Although Jason is only one year old now, we feel confident that 20 years into the future, he’ll inherit a life insurance plan that secures him for life and always reminds him of us.
If you’re interested in buying whole life insurance for your child or grandchild, learning even more about your options is easy. So too is comparing plans and buying the right one once you’ve found it. Just click here to begin.
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