Your financial legacy, how much of what you do now will affect your loved ones in their future? You want your children or even grandchildren to benefit from your hard work that you are doing now. What if I told you that you could leave something behind that could possibly help them? Something to help make their life easier and ease the financial burden that life throws at us.
So how would we start this? The first step is starting a life policy for them. Life insurance is meant to serve as an income replacement for dependents after you’re gone and can be useful as a retirement or estate planning tool while you’re alive. This is something that can be scaled up and down. But the sooner you start on it the better the outcome. The longer the money has to accumulate wealth the better. Babies are expensive and it only goes up in price as they get older and the best way to combat the expenses of being an adult is to have safety net. So being a new grandparent is the best opportunity to make that safety net for them. So, when your grandchildren eventually need to put a down payment on a house, they can use some of the safety net. Or if later in life they lose their job they have a little extra time to find a new and better one thanks to you. As long as they don’t take all of the money out of the policy right away it will continue to accumulate wealth. Then when your grandchildren decide to retire, they can take a little out every month or year to pay for a few bills. Or your grandchildren can start a new policy for their grandchildren that has more.
This trickle-down effect will only continue to help the next generation, and with most if not all insurance companies there is a guaranteed amount. A guaranteed future of wealth regardless. The safety net grows with interest but the economy doesn’t always like to play nicely. So, to make sure you have the right policy that won’t fail you should talk with your agent.
This could really start a way for families to bridge the gap of generational wealth. To make something bigger than themselves. To set up the next generation so they didn’t have to struggle as much and they can help their future generations. Depending on how much is put into a policy like this they could pay for a car with cash, college, a wedding of their dreams, a house. All while supporting the next generation of your family. They could trace it all back to you. The start of wealth accumulated just for them. A financial legacy that tells its story over generations of time.
Written by: Miya Gomberg
Sources and Inspiration:
Berry, Laura. “Can Grandparents Get Life Insurance on Grandchildren?” Edited by Daniel Walker, LifeInsuranceTypes.com – Compare Life Insurance Quotes and Life Insurance Companies, 29 June 2022, https://www.lifeinsurancetypes.com/can-grandparents-get-a-life-insurance-policy-on-grandchildren/.
Coleman, Kathryn, and Christina Vatansever. “What Is the Average Retirement Income? (2022) – Rita.” Retirement Industry Trust Association, BENZINGA, 20 Mar. 2020, https://ritaus.org/average-retirement-income/.
Kilroy, Ashley. “How Does Life Insurance Work?” Edited by Jason Metz, Forbes, Forbes Magazine, 10 July 2022, https://www.forbes.com/advisor/life-insurance/how-it-works/#:~:text=Life%20insurance%20is%20a%20contract%20between%20you%20and,use%20the%20money%20for%20whatever%20purpose%20they%20choose.
Shoenthal, Rebecca. “Grandparents Buying Life Insurance for Grandchildren.” Policygenius, Policygenius, 31 Jan. 2022, https://www.policygenius.com/life-insurance/grandparents-buying-life-insurance-for-grandchildren/#:~:text=Key%20takeaways%20Grandparents%20can%20buy%20life%20insurance%20for,face%20value%20of%20their%20parent%20or%20guardian%E2%80%99s%20policy.
Stottlemyer, Rob. “The Gift of a Lifetime.” Keystone, 2022.