Key benefits of gifting life insurance


Special to the Recorder

Gifting a grandchild with life insurance has a number of benefits. Here are just a few:

Provides lasting value: A life insurance policy is a benefit that lasts a lifetime. When you gift life insurance to your grandchildren, its value will stick around and can even grow throughout their life. If you purchase permanent life insurance for them, the policy will grow tax-deferred. And as long as they are alive – and the policy remains actively funded – they’ll continue to grow the cash value.

 Tax advantages for you: Purchasing permanent life insurance as a gift for your grandchildren can help them grow tax-deferred money and can help you support tax-friendly financial strategies. If you will have high income and estate taxes, then you may need to find ways to reduce your tax liabilities. By purchasing a policy for your grandchild, you can minimize this liability by creating an additional shelter from high taxes.

 Capture a lower premium for life: The age at which a person purchases their permanent life insurance can affect how much their premiums cost – and these rates lock in for the life of the policy. For this reason, purchasing a policy for a grandchild when they’re young will provide them with much lower premiums than if they were to purchase that same policy on their own 30 years later. You can help your grandchildren’s future finances by locking in their premiums today, when they’re younger and healthier.

 Help set up future financial stability:
A person is never too young to start healthy financial habits. Purchasing a life insurance policy for your grandchildren can help support their financial wellness, even at a young age. Benefits such as growing a tax-deferred cash value in the life insurance can help your loved one have access to future funds, should they need an income boost. You’re also supporting them by giving them a death benefit protection, which is always a helpful risk-planning strategy in life.

 Each person has a unique life that drives what decisions make the most financial sense. If you’d like to explore whether gifting a life insurance policy to your grandchildren is right for you, we’re happy to talk.  

Frederic “Ric” Schilling is a Florida native, born in Jacksonville, Fl. Ric is president of Senior Guardians of America, a local North Florida firm specializing in tax reduction, long-term illness planning, asset protection, probate avoidance and life income planning. Ric is a National Speaker and Advocate on Senior Issues and has been featured by the Florida Times Union and WJXT, TV-4 in Jacksonville as an authority on Estate Planning and Retirement Issues. Senior Guardians has an A+ rating with the Better Business Bureau and is a member in excellent standing with the National Ethics Association. Contact Frederic: (904) 371-3302 or (888) 891-3381. Please visit:

This article is not intended to give tax or legal advice. Securities offered through Center Street Securities, Inc. (CSS), a registered Broker-Dealer and Member of FINRA & SIPC. Senior Guardians is independent of CSS.