CHILDREN ARE FULL OF IMMEASURABLE POTENTIAL – but they often need financial resources to make their dreams come true. Aspiring professionals need to finance years of schooling. Future entrepreneurs need start-up capital. Everybody needs a home, and real estate doesn’t come cheap.
There are many ways to help build a foundation for a child’s or grandchild’s financial future. One innovative strategy is to purchase insurance that increases in value over time. This approach uses a permanent life insurance policy to facilitate the tax-efficient transfer of wealth between generations.
Here’s how it works
- Purchase a permanent life insurance policy on the life of a child or grandchild
- As the owner, choose to top up the premiums to build cash value
- Transfer ownership of the policy to the child or grandchild at or after age 18