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Holiday Gift Idea for Grandparents

Nov 03, 2014 03:42AM, Published by Family Features, Categories: Today Family Features, Family Features Lifestyle




(Family Features) Tired of purchasing toys that break or that her grandchildren will outgrow, 62-year-old Barbara Carlson* decided the holidays were a perfect time to purchase a gift that will continue to protect both of her grandchildren well into their futures.

“I just became a grandmother for the second time, and I bought a permanent youth life insurance policy for my new granddaughter that could either one day help protect her financially if the unexpected happens or help her pay for college,” said Carlson.

She is not alone. Grandparents are increasingly giving the gift of life insurance to their grandchildren for many reasons. For Carlson, it was a way of helping her son and daughter-in-law during a time when budgets are tight. She purchased the two youth whole life insurance policies so the new parents could focus on more immediate concerns, such as increased childcare expenses and other necessities.

“I bought both youth policies when the grandchildren were newborns and their policies will mature in 20 years,” added Carlson. “That means when my grandchildren reach age 20, they can either keep their policy as life insurance protection or they may decide to borrow against the cash value to help pay for college.”

Carlson pays approximately $15 a month for each child’s policy and those premium payments never increase. Her son maintains sole control of the policies until her grandchildren reach the age of 16, with some restrictions.

Three Tips for Purchasing Youth Life Insurance

1. Consider youth policies that are whole life policies. Whole life youth policies are a form of permanent life insurance. That means the child continues to be insured, regardless of changes in her or his health condition, as long as the policy remains in force and the premiums are paid. The premium payments are guaranteed and never increase.

2. Purchase youth life insurance at younger ages. While many organizations offer youth life insurance up to age 18, typically the earlier you purchase the policy, the less expensive it is over the coverage period.

3. Different life insurance organizations offer additional child-friendly benefits. In addition to offering youth life policies, life insurers such as not-for-profit insurer Royal Neighbors of America, also offers its members benefits which currently include scholarship opportunities that can help fund the costs of a college education.

For more information on life insurance products or member benefits such as scholarships, log on to www.royalneighbors.org or call (866) 845-6665.

* Details have been altered to ensure personal privacy.

Photo courtesy of Getty Images

Sponsored by Royal Neighbors


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