Life Insurance: A Good Christmas Gift for Grandchildren?

Life insurance is a smart purchase – but can it ever be a good gift? If done right, purchasing life insurance for a family member could be a thoughtful and appreciated gesture this holiday season.

It’s especially common for grandparents to buy a permanent life insurance for a grandchild as a gift. This way, when the grandchildren are older, they will have a policy that has built a cash value. They will also have a great rate locked in.

If you want to buy life insurance for your grandchildren this Christmas, here’s how to make this a gift that will be appreciated.

Step One: Get the Parents on Board

Some parents may be initially opposed to the idea of insuring their child. However, once you explain that permanent life insurance builds a cash value that can be borrowed or withdrawn for any purpose – like college tuition – the parents may start to warm up to the idea.

You can also point out the value of having a permanent life insurance policy, which never expires as long as it is maintained. Getting a policy when you’re younger and healthier means you’ll be able to lock in great rates. A typical child can get a great rate.

You may also need the parents’ help when it comes time to complete the application. Depending on the laws in your state, the parents may need to sign off on the policy. The application may also include questions about the child’s health and physical condition.

Step Two: Consider Some Practical Issues

Once you have the family onboard with your idea, you need to think about some of the details.

There are many different types of life insurance. If you’re interested in a life insurance policy that never expires and builds a cash value, you’ll need to get permanent life insurance – not term, which expires unless renewed and does not build a cash value.

There are different types of permanent life insurance, including whole life insurance and universal life insurance. These policies have some important differences, so talk to an insurance agent about which one is best for your situation.

Also consider the long-term issues. If you’re planning to purchase a life insurance policy for a grandchild as a present, how long do you plan to pay for it? A permanent life insurance can last the entirety of a person’s life as long as it is maintained. When you’re buying life insurance for a child, this is a long time. Think about how long you will pay the premiums – perhaps until the child is an adult or until the policy has built a minimum cash value, for example. Making your commitment clear from the beginning will help you avoid potential strife down the road.

Step Three: Complete an Application

You’re ready to complete an application. An insurance agent can help you with the process. Although your grandchild may not appreciate the gift right away, he or she will come to recognize its value. The parents will also know that you’ve done a great thing for the child’s future.

Learn more by requesting a life insurance quote from Insurance Line One.  

Life insurance may be the perfect Christmas gift for your grandchildren, especially permanent life insurance, which builds a cash value that can be borrowed or withdrawn for any purpose – like college tuition. How does it work? Find out in our article:


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