Did you know you could use the cash value accumulated from your whole life policy to benefit your children and/or your grandchildren? Many parents want their children to reach their dreams and financial goals, but don’t know how they can. Little do they know, that you can use the cash value of your life insurance to fund your children’s future. For instance, the guaranteed insurability ride will allow a child to add additional coverage without underwriting in the future. The added value provided by a guaranteed insurability rider includes 9 periodic increase of $125,000 each, which makes for a total of 1,000,000 of additional coverage.
It is a gift that lasts and instill the value of protecting those who matter most.
Cash value access can be used in the future for:
o   College tuition
o   Funding a wedding
o   Down payment on a house
o   Starting a business
o   Supplement income during retirement
The cash can be accessed on a tax-advantaged basis and used for any purpose. It’s important to understand that any distributions will reduce the policy’s cash value and death benefit, so your children should be selective about how they use the policy
You can also name your children as your life insurance beneficiaries and name an adult custodian under the Uniform Transfers to Minors Act (UTMA). You can also establish a living trust, where you name the trustee as the beneficiary of the life insurance policy. In a living trust, you name the minor children as beneficiaries of any money the trust receives from the insurance policy.
Cosmo Insurance Agency is knowledgeable in various options including but not limited to – term, ROP, permanent and whole – from over two dozen A rated carriers. We are familiar with the rate classifications that particular carriers use to determine the health class of enrollees – and there are significant differences between them. No matter what the results of your medical examination are, we will find the insurer that will provide you will the best rating class and thus the lowest premiums.
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