You love being a grandparent, and you couldn’t have imagined just how much joy it would bring into 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 able 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.
You may not consider Life insurance when you think about paying for college. But it is an option, and a good one, because it offers other benefits you may not know about.
When you purchase whole life insurance, it builds cash value over time. (Click here to learn more on the difference between whole life insurance, which is permanent, and term life insurance, which is temporary.)
Cash value builds while you have whole life insurance in place. And the possibilities go beyond college. You can use the funds1 in any number of ways. 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’s two more reasons to cover the young people in your life with life insurance sooner than later: 1. factors like health and age can increase rates and 2. the criteria you have to meet to get life insurance increases with age.
Once 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 will 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, you can convert to permanent coverage easily, and your grandchild can skip additional requirements like medical tests.3
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 you have life insurance in place, in the worst of situations, your child won’t have to worry about how to pay for funeral expenses for their child. Together, the family will be able to focus on grieving and finding a way to move forward.
College Savings Plans4 give you an opportunity to invest a little bit at a time until your grandchild is ready to go college. These plans offer federal tax-free earnings to help cover qualified expenses at any accredited school.5
And here’s the great part. These plans could help with all kinds of dreams, including accredited trade or technical school. So if your grandchild dreams of being a make-up artist or a heavy equipment operator, you can help make those dreams happen too.
Not all scholarships rely just on GPA and test scores. These things are important, of course, but there are organizations you can join that center on your beliefs and values. Some of these organizations celebrate their young members, in part, by offering scholarships.6
For example, the WoodmenLife Focus Forward Scholarship® rewards students for community service and patriotism in addition to their academic efforts. The program directly reflects the commitment WoodmenLife members7 share to family, community and country.
If you’re just beginning to look at options for helping your grandchild with their future dreams, here are some steps to get you started.
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