A Grandparent’s Legacy: The Gift of Life Insurance


By Victoria Ostrosky

Insurance Zone VictoriaJessie was going through a pile of mail while standing at her circular filing system, quickly disposing of the junk mail, when one piece caught her attention. Her face lit up with a smile.

Almost two years ago Jessie became a grandmother. Her granddaughter was everything to her, and if you were to take a peek in Maddie’s nursery you’d know, because the walls and floors were decorated with all of the toys and stuffed animals any little girl could possibly want.

In the past, when Jessie’s friends would go on and on about their grandchildren she’d sit quietly, waiting for them to move on to another topic. She couldn’t understand. But now she knew. Her life changed in a single moment with the birth of little Maddie. Jessie thought she understood love from being a mother, but somehow this was different. Her love and devotion to this tiny little human was complete and total.

So, that’s why this piece of junk mail made her stop and examine it more carefully.
Hmmm… Jessie hadn’t thought about a life insurance policy for Maddie. Could a grandparent even purchase one? And is it a good idea like this sales brochure was saying? She decided to give her insurance agent a call and make an appointment.

“It’s so good to see you, Jessie!” said Anne, as she ushered her into her office.

“So, I was thinking about purchasing a life insurance policy for Maddie. What do you think?”

“That’s a great idea!” said Anne. “Whole life policies for young children are a cost-effective way to provide a guaranteed death benefit and a fantastic gift from a grandparent, aunt, uncle or parent. I have a product that is an easy issue policy with only a few underwriting questions. One of the great features of this policy is that its coverage doubles by the time she’s a young adult. Let’s say you insure Maddie for $50,000. When Maddie turns 18, her coverage automatically increases to $75,000, then at age 25, it increases once more to $100,000, while the premium stays the same.

Being a permanent life policy, it won’t expire as long as the premiums are paid, and it grows in cash value that can be borrowed against if desired. It’s a nice little policy that can be the solid foundation for broader protection in the future. I secured similar protection for my three children and two grandchildren.

We can easily get a policy started. I also recommend adding a couple of inexpensive riders – one of them being a guaranteed insurability rider – which will give Maddie the option of buying additional insurance during her lifetime without needing to prove insurability. This is a great feature if she becomes, let’s say, diabetic, or develops cancer later in life, and might not qualify for affordable insurance or any insurance at all.”

Anne also took a few minutes to mention additional life insurance options for families and business owners. She explained how the proceeds from a life insurance policy can do some amazing things for people. It can keep families in their homes, pay off debt, car loans and mortgages, secure funding for college, and provide an income stream. For business owners, it can make sure the business stays in the family by providing money to keep the business running while training a replacement, or fund a buy/sell agreement.

Anne quickly worked up a quote with an affordable premium which was less than $25 per month. Jessie loved the idea of the life insurance policy accruing cash value that Maddie could use to help pay for college or as a down payment on a home. Grandma Jessie went home even happier than usual, knowing she was helping to secure Maddie’s future.

For most of us life insurance is not a cool topic, but it is a necessary one. The best time to buy life insurance is when you’re young and healthy, as the cost of your insurance will never be lower. Unfortunately, young people often don’t have the money to buy insurance. When someone is recently born, graduating from grade school, high school or college, or getting married, this is a great opportunity for a parent, grandparent or other close relative to purchase life insurance for them.

Give your agent a call to find out about life insurance for you, your business, your children, or grandchildren. It’s one purchase that will never go out of style.

Insurance Zone, owned by Joe and Lea Capers, is a full service commercial and personal lines insurance agency serving Destin, Miramar Beach, Santa Rosa Beach (30A), Bluewater Bay, Hammock Bay and Inlet Beach. Visit their Video Library on www.ins-zone.com and watch several informative videos on Life Insurance, or call 850.424.6979. Victoria Ostrosky, author of this article is an Agent/CSR with IZ.