What's the best policy for children?
When it comes to children's life insurance, there isn't that many options as with adult life insurance
Very few companies offer term insurance for juveniles, so the most popular policy on children is a WHole Life policy. Premiums can start at about $10 per month, so it is not very expensive, but for a larger policy it could be much more.
Juvenile life insurance as an investment
This strategy for juveniles combines giving a child or grandchild the gif of a life insurance policy providing tax advantaged growth with the opportunity to start funding their own tax -free savings account (TFSA)on their 18th birthday.
Life Insurance on children has little to do with immediate coverage needs and more to do with providing a foundation for their future.
There is no income tax payable on the growth while it remains in the policy, and the death benefit is payable to the named beneficiaries tax-free upon death. Current tax laws allow for the transfer of ownership of the policy between the policyholder and the insured child without tax imolications, regardless of who is paying premiums and how much cash value is in the plan at the time of transfer.
You will have full back-up of many years of experience dealing with all these insurance companies. The benefit to you is that we can use that experience in advising you on how to go about getting the best value for your money, yet getting high quality service.
Life Insurance growth strategy for juveniles - How it works
The Life insurance growth strategy for juveniles involves purchasing a permanent life insurance solution on the life of a child or grandchildand paying the premiums until that child's 18th birthday. At that time, ownership of the policy is transferred to the child, premiums cease and cash values can be withdrawn and used by the child to fund a TFSA in their name.