Insurance is one of the best tools grandparents can use to set their grandkids up for success later in life.
There are three ways to do it:
1. First and foremost, insurance plays a key role in estate planning because it’s an effective and tax-efficient way to pass wealth between generations.
All grandparents should look into how life insurance could help them maximize what they leave behind. (I’d be happy to help you look into the details, compare options and see what would work best for you.)
2. The second option is to take out critical illness policies on the grandkids, especially ones that return the premium at the age of 25 if the protection goes unused. This sort of policy helps out parents if their kids get sick and they can’t work for a while as a result, and helps ensure the family can afford the best quality care regardless of cost.
On the other hand, if all goes well, all the premium paid gets returned at age 25 and can help with a wedding, pay off student loans, or go toward a down payment on a home.
3. The third option is to take out a life insurance policy for the grandkids, specifically one that provides a small amount of coverage but that maximizes their insurability benefit moving forward.
The idea here is to ensure your grandkids can get affordable insurance throughout their lives, even if they develop a health condition that would otherwise make it far more expensive, and to continue passing wealth down through the generations.
By insuring your grandkids, you can help ensure that their kids will be set up for success too, and so on and so on.
Creating intergenerational wealth and improving the lives of every future generation of your family isn’t something that only super rich families can do. At least to some degree, it’s something almost any grandparent can achieve by simply taking advantage of the opportunities insurance provides.