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Case Study: Children’s Whole Life Insurance Strategy

By Brandi Dickson Graph provided by Empire life

Jim & Betty

Jim and Betty are proud grandparents. They have a healthy new grandson Charlie.

Jim & Betty want to give their new grandson the gift of participating whole life insurance policy. They choose a policy with a reputable insurance company, they have agreed to make payments into the plan for 20 years. They also choose the Paid-Up Additions dividend option that can provide Charlie with permanent life insurance protection for the rest of his life and the ability to access cash values that accumulate in the policy.

Accessing Cash Values
If Charlie needs cash in the future, for post-secondary education, buying his first home, or whatever he chooses, he will have the option of accessing accumulated cash values through a policy loan, using the policy as leverage to borrow from another institution, most lenders will allow you to borrow up to 80% of the cash value in the policy. or you can surrender the policy as well and take the funds out.

Below is an example of what an Empire life policy could look like based on certain criteria. This was a starting death benefit of 50K with an annual premium of $691.00 for 20 years.