You love being a grandparent, and you couldn’t have imagined just how much joy it would bring to your life. But you worry for your grandchildren, too. You worry about the future, about the big dreams they have now and whether they’ll be financially prepared to make those dreams reality. Here’s the good news: helping your grandchild with homework or ensuring they get good grades isn’t the only way to make an impact.
Life insurance for grandchildren is a crucial way to help prepare them financially. We’ll explain what putting life insurance in place can do.
Life insurance is a great way to protect the ones you love the most, including your grandchildren. It provides not only financial piece of mind, but also may help cover costs like college tuition and may provide access to increased coverage in the future. And should the unthinkable happen, it provides a death benefit to whomever you choose.
Types of life insurance include permanent, which provides coverage throughout your lifetime, and term, which provides coverage for a certain amount of time and may offer an option to convert to permanent insurance after the initial term ends. Some types of permanent life insurance build cash value over time, which can later be accessed with a loan or partial surrender1.
You can use the funds in any number of ways; the possibilities go beyond education costs. So, if your grandchild wants to start a business, buy a home or run for mayor, the funds may be able to help with that too.
Most people assume life insurance is a given — buy it, pay and go. But that’s not always how it works. Conditions that develop over time may cause you to become ineligible for life insurance protection. Purchasing life insurance for your grandchildren at a young age could help them continue coverage later.
Here are two more reasons to cover the young people in your life with life insurance sooner rather than later:
After you purchase whole life insurance, the premium rates will never go up. You can transfer the certificate to your grandchild after they reach a certain age, and they can continue making payments to maintain coverage throughout their life. There are also options to complete paying premiums for whole life insurance within 10 or 20 years2, so your grandchild has coverage for life but doesn’t need to worry about payments.
If you purchase term life insurance, your grandchild may be able to convert to permanent coverage easily when the term ends. There are usually no additional requirements like medical tests3 for a conversion of this type.
It’s almost impossible to think about a young person dying. But the unexpected happens when we least expect it, and often when we are least prepared. That’s why when a child passes away, we so often see communities rally together to raise money for the family.
When your grandchild has life insurance in place, in the worst of situations, your child won’t have to worry about how to pay for funeral expenses. Together, the family will be able to focus on grieving and finding a way to move forward.
If you’re just beginning to look at options for helping your grandchild with their future financial needs, your local WoodmenLife Representative can help.
We’ve been helping to protect the financial future of families like yours, making a difference in hometowns across America and honoring our country since 1890. As a not-for-profit life insurance company, we put money back into the community. We’re here when you need us most.Learn More About WoodmenLife