I am not an extravagant gift giver. My gifts for my kids and my grandson tend to be practical or experiential. The Gift for Life from TruePath Life Insurance falls into both of those categories.
The Gift For Life Insurance – Super Practical Gifts for Kids and Grandkids
I like to live well but I have always been a frugal and practical gift giver. We travel often and I truly believe the places we went and the things they saw will stick in their memory more than not having the latest video gaming console under the tree on Christmas morning. At least let’s hope!
The Gift for Life Insurance is the ultimate in practical gifts. While kids aren’t going to jump for joy over getting life insurance as a Christmas or birthday present, it’s definitely something they’ll appreciate later in life, maybe after you’re gone.
Life Insurance has always been a weird subject for me. Probably because I don’t like to think about what happens after I die. Because that means I’m…well, dead. I guess that’s really the part I don’t like thinking about because who really does?
But even though the thought of my kids or my grandson being grateful for a gift I gave them after I’m no longer with us is a little weird, the practical side of me appreciates The Gift of Life from TruePath Life Insurance for all the benefits it can provide.
I’m also a realist and I know I won’t live forever. I have three kids and my youngest two were a later in life kind of unexpected turn of events which makes planning for their future without me is a box I have to check.
The Gift for Life from TruePath – What is it?
The Gift for Life from TruePath offers so many options for the beneficiary (that’s the person the insurance is for). In a world where everything about the future seems uncertain, this is a gift that will offer you some peace of mind for your loved ones, even if they don’t realize the full value of that gift.
The Gift for Life is a million-dollar life insurance policy you buy for a child, ideally when they are very young.
When the child reaches 18*, they’ll have a $1,000,000 death benefit and the policy will have a cash value of $112,000. At 50, they’ll have the same death benefit, but the cash value of the policy will increase to $320,980. And yes, it’s really weird to think of my two-year-old grandson being a middle-aged adult, but he will be someday.
The death benefit can vary. Depending on how much you put in the policy each month (premiums), how it is designed, and your individual goals will determine the death benefit need.
Each term and permanent policy have four living benefit riders so if a child becomes sick, injured or disabled, the family will potentially be able to access up to 90% of the death benefit to make sure the child gets the best possible care. The idea of having to sell our home to pay for a child’s medical bills is horrible so I’m glad there are plans like these out there that can help families like mine.
The living benefit riders are included at no extra cost and provide additional protection, along with the death benefit. In the event it is a cash-value life insurance product (Gift of Life), the money will grow tax-deferred and comes out tax-free.
*These numbers assume the policy is purchased when the child is one year old.
So, let’s talk about that cash value
Life Insurance is important because it helps pay for your funeral or other final expenses, which can be very steep. It can also pay off debt and ease the financial hardship for family members left behind.
As I said, it’s weird to think about my three-year-old grandson and my 11-year-old sons being middle aged men with families to take care of. Thinking about those someday families struggling financially because one of my dear ones dying unexpectedly is…well, it’s something I don’t like to think about because it’s not a pleasant thought. But, planning for the future is important and no one lives forever, so unpleasant or not, we have to do it.
The Gift for Life also has cash value, which means the policy can be used while the beneficiary is living. If you buy your child or grandchild the Gift for Life, he can borrow against the policy to make major purchases, such as a car.
Who knows what car purchases and car technology are going to look at in 18 years? Odds are high that our kids are going to want and need to buy one when they are young adults. A car is a necessity for most people and something we replace as we go through various stages of life.
If your beneficiary so chooses, they can borrow against their Gift for Life policy and purchase the car they want or need and be in the very best position when they’re negotiated for the best prices. They can also use the Gift for Life for education, to start a business, a down payment on a home, or for any other major expense.
Other Things to Know
The total cost of the policy/coverage described above is $93,540. This works out to be about $500 per month for 15 years. Yes, that’s an amount most people would consider a lot and would probably require looking at your budget as a whole before including. But think of the gift you’re giving to your child and what impact you are having on their future.
Your kids or grandkids are covered for car buying, education, or whatever other major expenses that might come along PLUS they’ve got life insurance. Getting their own life insurance policy is something they won’t have to worry about when they become an adult. And let’s face it: most young adults who are entering the workforce probably don’t have “Buy a life insurance policy” that high on their to-do list. They’re focused on other areas of their life and because you’ve taken care of this for them, they have peace of mind and security. They may not understand the importance of the Gift for Life but that’s OK. We know our children don’t understand or appreciate a lot of the things we do for them in life.
Distributions are tax-free and there’s no penalty for withdrawals. TruePath recommends no withdrawals until you’ve had the policy for 10 years. You can also talk to a TruePath agent about other financial planning products or life insurance needs for adults.
Providing security for the future when the future is uncertain
I mean…some element of the future is always somewhat uncertain, but things seem doubly uncertain now. After the events of the last 24 months and living through a global pandemic, I fully realize that we never know what life is going to throw at us. While we can’t prepare for everything, having our financial ducks in a row – or taking care of things for our kids so they have their financial ducks in a row – definitely eliminates some hardships and makes navigating the future a little less scary in what are very scary times.
Talk to a TruePath agent about getting the Gift for Life for your child or grandchild. Contact Melissa Northway for more info.
If you decide to purchase TruePath please enter my code, TRUEPATHJILL, on the website when prompted. I’ll earn a commission from TruePath, at no extra cost to you.