Life Insurance – the Gift that Keeps on Giving

Business Wire

A whole life policy leaves a lasting legacy for children or grandchildren

WOBURN, Mass.--(BUSINESS WIRE)--
With the holidays approaching, people are frantically trying to find the perfect gifts for their children or grandchildren, whether it be a toy, a video game, or clothing. There is one gift, however, that they probably haven’t considered, but one that will leave a lasting legacy long after toys and clothes have been outgrown: life insurance.

While it may seem a little different than traditional gifts, whole life insurance can be an ideal holiday present, according to life insurer SBLI. Here’s why:

It can last a lifetime – and then some. Whole life insurance provides death benefit protection, creates a living legacy that will accumulate cash value year after year, and may help your child or grandchild get a head start on their financial future. And, if you choose a limited payment option, the policy can be fully paid with a single premium or within 10, 15 or 20 years.

Premium rates may never be lower. Premiums generally increase with age, but with permanent life insurance, it’s possible to lock in the premium at the insured person’s current age - for life. When a person insured is a minor, the life insurance policy is generally owned by the purchasing adult until the child reaches the age of majority as defined by state law. Upon reaching the age of majority, ownership of the policy can be transferred to the child.

It won't wear out or fall apart. As long as you pay the policy premiums, the life insurance policy you purchase for your kids or grandkids today can still be there years from now – something that material things can’t provide.

It has accumulation potential. Many gifts lose value over time. A permanent life insurance policy, on the other hand, has the potential to accumulate cash value each year. Cash values can be borrowed for any purpose — to provide a down payment on a first home, help pay for college, start a business or even to help fund a comfortable retirement years down the road.

Keep in mind: Loans against a policy will accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest, and withdrawals reduce the available death benefit.

There are tax advantages. Cash values that accumulate in a life insurance policy are tax-deferred. Even when cash values are borrowed, there may be no tax consequences in many instances. Additionally, proceeds received by beneficiaries are generally not taxable as income. Talk with your tax advisor for more details.

A policy can help guarantee future insurability. Once the life insurance policy has been issued, coverage cannot be canceled as long as all required premiums are paid on time. Also, if a Guaranteed Purchase Option Rider is included with the policy, the person insured can purchase more coverage at specified ages or life events with no medical exams or health questions. This can be especially significant if the insured’s health situation changes. Just think: You could be laying their future family’s financial foundation as well!

It may not be the latest hot toy or electronic gadget, but life insurance truly is the gift that keeps on giving, providing benefits to your children or grandchildren well into the future.

About SBLI

For more than 115 years, SBLI (The Savings Bank Mutual Life Insurance Company of Massachusetts) has specialized in providing hassle-free, affordable life insurance. Whether it be term life, whole life or a plan that combines the two, we offer dependable protection, at a fair price. For more information, visit www.sbli.com.