Things to Consider
If the goal is to leave a lasting financial legacy for grandchildren beyond the coverage provided by term policies, a permanent life insurance policy might be a good option. Whole life insurance policies offer lifelong coverage with a cash value component that accumulates over time. These policies provide benefits beyond just a death benefit:
Guaranteed Payout
Unlike term policies that expire after a set term, permanent life insurance ensures a payout to beneficiaries regardless of when the insured passes away, as long as premiums are paid.
Cash Value Growth
Accumulates cash value over time, which can be accessed during the insured’s lifetime. This cash value can be used for various purposes, such as supplementing retirement income or assisting with grandchildren’s education expenses.
Estate Planning
Provides an efficient way to pass on wealth to grandchildren by designating them as beneficiaries. Life insurance proceeds generally bypass probate, ensuring a more seamless transfer of assets.
Legacy Building
Allows the insured to leave a more substantial financial legacy for grandchildren beyond the coverage provided by term policies.