Think of all the special events in the lives of your children or grandchildren: birthdays, holidays, graduations, weddings—even celebrating the birth of a new little one. If you’re like some of us, you spend hours trying to think of the perfect gift for the occasion—something that will show your child or grandchild just how much they mean to you. Here’s a suggestion, and one you won’t find in any store: life insurance for children.
We know it may seem a little different in the gift department, but consider these reasons why life insurance can be just the right choice:
An additional important detail is that when the 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. When the child reaches the age of majority, ownership of the policy can be transferred to the child.
We know that your kids and grandkids mean the world to you. If you have questions about buying life insurance for young people, a New York Life agent is always here to help. We’ll have one in your area contact you. Get started.
* There may be tax implications for policies recognized as modified endowment contracts (MEC), or if you partially surrender a policy in which the surrender exceeds the cost basis of the policy. Distributions including loans from a MEC are taxable to the extent of the gain in a policy and may also be subject to a 10% additional tax if the owner is under age 59½.
** The new policy must have a face amount of at least $25,000, and the charges for the PPO Rider will vary based on the payer’s risk class and face amount.