Soon Your Kids Will Be Off to College - Have You Protected Their Future?

Summer is here and your kids are playing outside……….
they’ll be off to college before you know it………..
have you protected their future?
 
Summer has finally arrived and so has the laughter of kids playing outside. Before your know it, though, they will be off to college starting their own lives.
 
As a parent, you encourage their involvement in sports, music and other activities. You want them to have the best and be the best.  So while you are signing them up for all these activities, have you given any thought to saving for their financial future?
 
Many people open savings accounts to help them save for their kid’s education, first car or first home. While these are great tools, most are unaware of another tool available to help accumulate money: cash value life insurance.
 
Why consider cash value life insurance on a child?  Because this type of insurance provides a combination of benefits not typically found in other savings vehicles.
 
What are these benefits?
·        Life insurance for life, with no paramedic exam. As long as the premiums are up to date, the insurer cannot cancel the policy even if the child develops a terminal illness – any time during their life. Policies for children as young as a few weeks old are available.
·        Lower cost. The premiums for children are minimal.  
·        Tax deferred savings and access. The policy provides insurance coverage with the opportunity for tax-deferred cash value accumulation.  Additionally, the policy’s contract value can be accessed through tax-advantaged loans or withdrawals.  (Please contact your accountant, attorney or legal professional for further advice on tax and/or legal aspects.)
 
Cash value life insurance policies differ from term policies in many ways.  There are also several different types of cash value policies, resulting in more variety.  Below are descriptions of some of the features of cash value policies. 
 
·        Flexibility of payments: Unlike other insurance products, cash value policies offer flexibility in premiums.  You decide the amount of premium and when to be paid the premium based on face amount of the policy.
·        Adjustable face amounts:  Adjust the amount of life insurance coverage as your needs change.  You can add or reduce coverage as your needs change.  However, increases may be subject to underwriting approval and decreases could be subject to minimum policy limits. 
·        Forced Savings:  Because the premium includes both the cost of coverage and an amount to be directed toward cash savings, cash value policies also act as a forced savings.  This can be beneficial to individuals who want help saving money and need life insurance . 
 
Utilizing life insurance can be an amazing way to take advantage of tax-deferred accumulation of cash value and tax-advantaged loans and withdrawals.  However, it’s important to remember that you should consider the risks, fees, charges and expenses of the contract and any underlying options carefully before.  That’s why it is important to research your options and talk to an insurance professional who can help you determine the best options for your situation.
 
You can design a life insurance package for your child now that can last throughout his or her lifetime, a policy that can protect their future insurability, create a lasting estate, build their savings to finance a business venture, take a vacation or fund retirement. It maybe one of the BEST gifts you can give your CHILD, GRANDCHILD, NIECE, NEPHEW or a family member that will benefit them throughout their lives, with flexibility while providing protection – even when they have their own kids!
 
This material if for general informational purposes only and is not legal or tax advice.  This material may not reflect your particular circumstances.  Please consult your tax or legal advisors for advice specific to your situation.  Carefully read the contract prior to purchasing any life insurance. 
START NOW – Do not wait to start saving.
Please call my office at 630-964-4010 or email me at
amalak@farmersagent.com to schedule a complimentary consultation.
Visit my website www.farmersagent.com/amalak for more information.
 
Together we can develop a strategy to protect your little one’s future!