How Life Insurance for Children Is So Much More

Scott McEachern |

Last week, I was chatting with a local business owner and the topic of insurance on children came up. I ended up telling her a story about how we used life insurance in our family and at the end she told me it left her with goosebumps. To hear that my story resonated so much, I think I should share it again.


Our Story

When I was a child, my father purchased $10,000 of permanent life insurance on myself. Obviously no one ever wants to think about something bad happening to their child, but just in case, I was insured. But the real magic happens the longer I live. Bear with me as I explain. You see, this is a permanent policy, so it will be in place until I pass away, but my father only paid the premiums for 20 years (a built-in feature). After that time frame, the insurance is fully paid for. This type of policy has an additional feature, in which the insurance company shares its profits with the policy and with that money (dividends), more life insurance is purchased. So when the policy was purchased, it was worth $10,000 and now it’s worth more than $30,000 and it keeps growing every year at no out-of-pocket cost to us!

The Best Part – The Impact

30 Years Ago: My father purchased the insurance. He was financially protected if something happened to me before I became an adult.

Today: This adds to my family’s financial protection if something happens to me (and at no cost to my family, remember the insurance is fully paid for!)

In 20 years: My wife and I will have enough savings to cover our own final expenses, and the proceeds would likely go to our children, who would be starting college at that time in the event of my premature death.

In 40 years: My wife and I will be retired, our kids will likely have enough savings to cover their own final expenses, and the proceeds can be passed on to my grandchildren.

That’s what I call a LEGACY. One person sat down for 20 minutes to fill in an application which has the potential to leave an impact on four generations of our family. The proceeds may not pay out for 50 more years at which time my father may be long gone – but how cool is to know that he made a difference for future generations that he may not even meet. Powerful! Even as a grandparent today, you can put insurance on a grandchild that will provide benefits for generations to come. Call us to learn more and to create a legacy for your family!