Agency Blog

Gift Insurance Might be the Perfect Gift this Christmas

Looking for something special to give your loved ones this Christmas? Have you ever considered gift insurance? While it might not seem like the most exciting gift, giving insurance as a Christmas gift is not a bad idea. Gift insurance is practical, and it provides your loved ones with a valuable gift that they probably would never purchase for themselves.

Gift life insurance

Gift life insurance is a very thoughtful and prudent gift. It can help provide some financial security to the recipient for decades. You can either name the recipient as a beneficiary on a policy on your own life, or you can purchase a policy in the recipient’s name.

The value of a life insurance policy can increase over time. Permanent life insurance has a cash value element that will grow over time as long as the premiums are paid. The cash account can be accessed for various reasons over the recipient’s lifetime. In addition, a life insurance policy can protect the individual’s future insurability. Once a policy is issued, coverage cannot be canceled as long as the premiums are paid.

You will need to decide between giving term life insurance or permanent life insurance. Term life provides coverage for a specific number of years. A permanent life insurance policy provides coverage for a person’s entire life, as long as premiums are paid. It builds up cash value gradually, and the policy eventually can be surrendered for the cash value or the insured person can borrow against it.

Remember that permanent life insurance is usually more expensive than term insurance.

If you are thinking about gift life insurance for any child or young adult in your life, you can actually set up a trust from which can you pay the premiums. The recipient can then become the owner of the policy when they reach a certain age, if not immediately, and the cash value then becomes available.

Remember that insurance companies won’t let you take out an insurance policy on someone unless you have an “insurable interest.” This means that the recipient must be a relative, business associate or domestic partner.

Other Great Financial Gifts

If you are looking to give a financial gift, but don’t necessarily want to give cash, here are some other ideas in addition to life insurance:

  • Starting a Roth IRA
  • Grocery gift cards
  • Renter’s insurance
  • Student loan payment help
  • Time with a financial consultant

Experts recommend talking to an insurance agent who can give you expert advice and personal service so you purchase the right type of policy. The agents at Reeves Coon & Funderburg will work with you to find the right policy and gift for your loved ones this Christmas. Contact us today at one of our 4 convenient locations.

Add Your Comment

Your email address will not be published. Required fields are marked *