Life insurance is not just about a payout when you die, whole life insurance policies are an excellent investment vehicle, they work as a tax shelter and they build up a cash value and an equity component just like owning a home.
Here are the top 3 reasons why getting children a life insurance policy when they are young is very smart:
1. It’s an asset
2. It’s a tax shelter
3. It guarantees their insurability
Many people are not aware that whole life insurance policies have a
significant equity component to them. The cash value along with the death
benefit continue to build and grow year after year (even after the policy
is paid up). The cash value can be used later in life for a down-payment, for travel,
for tuition, to start a business, or for to fund any financial need in
their 20s, 30s, and throughout life.
Life Insurance is Canada’s secret tax shelter. It is comparable to an RRSP
meaning that any money inside the policy grows TAX FREE, however unlike an
RRSP – there is no tax liability when the policy is cashed out or leveraged
against. And of course the death benefit is paid out to their estate completely tax
free as well.
Most importantly, when a child is insured at a young age it means they will
always have coverage no matter what happens to their health. In most cases
they will have the ability to top up their insurance and also enjoy the
benefits of a growing policy even if they become uninsurable due to an
illness or injury.
Life insurance is a smart tool and a smart investment for children and
really anyone under age 65.
Call or email us for info, quotes, and options 778 245 2262
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