The document discusses the benefits of purchasing juvenile life insurance. It notes that while children do not currently need insurance, they will have financial needs as adults. Purchasing juvenile life insurance now is most cost effective as premiums increase with age. The cash value grows over time through compound interest. Parents maintain control of the policy and can use it to obtain loans. Premiums are also tax advantaged. Starting a policy now ensures the child's insurability even if health changes later. The policy is also self-completing if parents become disabled. Brian Penston is an insurance agent who has been helping clients with insurance, investments and financial products since 1975.
6. Juvenile Life Insurance
(A GIFT TO LAST A LIFETIME)
Parents and Grandparents don’t buy insurance on their
children and grandchildren. They buy it for them.
7. Juvenile Life Insurance
(A GIFT TO LAST A LIFETIME)
Parents and Grandparents don’t buy insurance on their
children and grandchildren. They buy it for them.
Why?
8. NEED - Children don't need insurance…. Yet. The children will have their own needs when they
grow up. If it is anything like today they will probably need lots of money in their estates.
INSURANCE ISSUES:
9. NEED - Children don't need insurance…. Yet. The children will have their own needs when they
grow up. If it is anything like today they will probably need lots of money in their estates.
COST - As far as cost is concerned there is never a better time to buy life insurance than at birth.
The cost is sure to increase as we get older and in some cases people become more of a risk
(higher price) because of health, hobbies or occupation. If insurance is not already in force, then
now is the best possible time to buy some.
INSURANCE ISSUES:
10. NEED - Children don't need insurance…. Yet. The children will have their own needs when they
grow up. If it is anything like today they will probably need lots of money in their estates.
COST - As far as cost is concerned there is never a better time to buy life insurance than at birth.
The cost is sure to increase as we get older and in some cases people become more of a risk
(higher price) because of health, hobbies or occupation. If insurance is not already in force, then
now is the best possible time to buy some.
VALUES - The cash value and insurance value increases as the policy gets older. Compound
interest affects the cash and death benefit. The older the policy, the higher the values.
INSURANCE ISSUES:
11. NEED - Children don't need insurance…. Yet. The children will have their own needs when they
grow up. If it is anything like today they will probably need lots of money in their estates.
COST - As far as cost is concerned there is never a better time to buy life insurance than at birth.
The cost is sure to increase as we get older and in some cases people become more of a risk
(higher price) because of health, hobbies or occupation. If insurance is not already in force, then
now is the best possible time to buy some.
VALUES - The cash value and insurance value increases as the policy gets older. Compound
interest affects the cash and death benefit. The older the policy, the higher the values.
CONTROL - You own the policy until you choose to transfer ownership to the life insured. You
can assign the policy to obtain a loan, borrow from the policy, or even cash it in as it is not the
child's property until you have determined that he or she is mature enough to handle it wisely.
INSURANCE ISSUES:
12. NEED - Children don't need insurance…. Yet. The children will have their own needs when they
grow up. If it is anything like today they will probably need lots of money in their estates.
COST - As far as cost is concerned there is never a better time to buy life insurance than at birth.
The cost is sure to increase as we get older and in some cases people become more of a risk
(higher price) because of health, hobbies or occupation. If insurance is not already in force, then
now is the best possible time to buy some.
VALUES - The cash value and insurance value increases as the policy gets older. Compound
interest affects the cash and death benefit. The older the policy, the higher the values.
CONTROL - You own the policy until you choose to transfer ownership to the life insured. You
can assign the policy to obtain a loan, borrow from the policy, or even cash it in as it is not the
child's property until you have determined that he or she is mature enough to handle it wisely.
TAXATION - The cash accumulates inside the policy without being taxed as interest is taxed.
When ownership is transferred it is not a taxable event. The only time tax is payable is if the cash
value is withdrawn (borrowed or surrendered) and even then only if the cash exceeds the
adjusted cost base of the policy.
INSURANCE ISSUES:
13. INSURANCE ISSUES: (Continued)
INSURABILITY - We all become uninsurable sometime. Some children are born
uninsurable. Some people are insurable until they are very old. By starting an insurance program
for a child you can build a fence around their insurability. They will always have the original
policy, and they will also be allowed to purchase more insurance at certain future dates
regardless of changes in health or other factors which might otherwise increase the cost of
insurance.
14. INSURANCE ISSUES: (Continued)
INSURABILITY - We all become uninsurable sometime. Some children are born
uninsurable. Some people are insurable until they are very old. By starting an insurance program
for a child you can build a fence around their insurability. They will always have the original
policy, and they will also be allowed to purchase more insurance at certain future dates
regardless of changes in health or other factors which might otherwise increase the cost of
insurance.
SELF COMPLETING - If the policyowner or parent dies or becomes disabled the company will
continue the payments on his/her behalf until the child has grown. The money that was going
into the Life Policy will likely be needed for other purposes. There are very few other
investments which offer this feature.
15. INSURANCE ISSUES: (Continued)
INSURABILITY - We all become uninsurable sometime. Some children are born
uninsurable. Some people are insurable until they are very old. By starting an insurance program
for a child you can build a fence around their insurability. They will always have the original
policy, and they will also be allowed to purchase more insurance at certain future dates
regardless of changes in health or other factors which might otherwise increase the cost of
insurance.
SELF COMPLETING - If the policyowner or parent dies or becomes disabled the company will
continue the payments on his/her behalf until the child has grown. The money that was going
into the Life Policy will likely be needed for other purposes. There are very few other
investments which offer this feature.
All benefits are subject to qualifying at time of purchase. Once accepted, the policy can only
be changed by the owner, not the insurance company.
18. I Have Been Helping Individuals and Groups
Arrange Their Life and Health Insurance,
Investments and Other Financial Products and
Services
Brian Penston
B.Comm. (Hons.), CLU, CH.F.C., CFP
19. Since 1975
I Have Been Helping Individuals and Groups
Arrange Their Life and Health Insurance,
Investments and Other Financial Products and
Services
Brian Penston
B.Comm. (Hons.), CLU, CH.F.C., CFP
20. Since 1975
I Have Been Helping Individuals and Groups
Arrange Their Life and Health Insurance,
Investments and Other Financial Products and
Services
Brian Penston
B.Comm. (Hons.), CLU, CH.F.C., CFP
