While most people don’t consider purchasing life insurance for young children, they do have other financial concerns, like building up a fund for future college education costs, and setting something aside for savings.
A LIRP can help to accomplish all that – and more!
In fact, by securing a LIRP when your child or grandchild is just starting out in the world, you can ensure their financial security for life – even long after you stop paying the premiums.
As an example, John and Debbie purchased a life insurance retirement plan for their grandson Joey when he was one year old – and their premium payment of just $1,200 per year for 20 years produced some impressive results.
In this case, Joey was able to access more than $133,241 in annual tax-free income starting at age 60, which provided him with nearly $3.5 million in total distribution from the policy over the next 30 years.
Joey was also able to “lock in” his insurance protection for life – even if he were to face an adverse health issue down the road – because permanent coverage is just exactly that…permanent.
His initial death benefit of $158,861 grew over time, and age 90, the coverage of more than $1.8 million was more than ten times its original amount. This, in turn, helped Joey to ensure that his loved ones would also have financial security in the future.