By Farm Bureau Financial Services on November 8, 2023
3 Reasons to Give Life Insurance as a Gift
If you’re looking for a gift that can create a lasting impression, you might want to consider purchasing a life insurance policy. It may not be a typical option, but when used correctly, it can be the gift that truly continues to give. Here are three reasons to give the gift of life insurance to a child (or another loved one).
1. Guaranteed Insurability
You want nothing but a bright future for your child or grandchild. By purchasing life insurance, you’re able to protect against a time when their insurability could be called into question. Many illnesses can prevent someone from qualifying for life insurance coverage. Should the worst happen, purchasing a life insurance policy at a young age secures insurability before a serious condition manifests.
2. Guaranteed Purchase
Along similar lines, when giving life insurance as a gift, you may have the option on certain policies to purchase what is known as a Guaranteed Purchase rider. The rider guarantees that the policyholder can purchase additional insurance regardless of medical condition. This would allow the recipient of your gift to continue purchasing life insurance, meaning they could build on that protection to help them and their families for years to come.
3. Lifelong Uses
Most people are not aware of the many uses of life insurance, including the following.
Retirement
The opportunity for more financial freedom one day is a gift that can never be underestimated! Certain types of life insurance policies can build cash value over time, and that resulting cash value can be used as a form of income in retirement.
Charity
Life insurance can be used to increase charitable giving. When you or a loved one has a life insurance policy, you have the opportunity to make a larger gift than would otherwise be possible by designating a favorite charity as a beneficiary. When you buy the gift of life insurance, you’re buying the opportunity for your loved one to “pay it forward.”
College
Life insurance can also be used to make college tuition payments for your child’s future family, should they be left without his or her salary. The same goes for a mortgage. There are more uses for life insurance than you might expect!
Protecting Against the Unexpected
In the end, life is all about uncertainty. You can’t predict future health problems, financial obligations or what someone’s life will be like in five, 10 or 20 years. What you can do is help protect that future. When you buy life insurance for a loved one, you’re purchasing something that will have an impact long after the wrapping paper is cleared away and toys have been set aside. If you’re looking for a gift with real, lasting value, your local Farm Bureau agent can help!
