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Life insurance makes a great graduation gift

Would life insurance make a gift for your graduate?

 

Allie Nicklow and Dalton Nicklow. Graduates with Life InsuranceYour recent graduate needs more than just a gift card or cash.  Both of which will be gone in the matter of days or weeks.

What should you get your graduate?

As a parent of two recent graduates, one from college and one from high school, this is certainly something that was on my mind.

Life Insurance is the best gift that you can give your recent graduate.

Why?

  • It will not be any cheaper than it is TODAY
  • The future is unknown. Although your graduate is healthy today, the future is uncertain
  • You are guaranteeing their insurability

So, what I did for both of my kids at their high school graduation:

I got them a whole life insurance policy, which is a permanent life insurance policy.  It is paid on 1 time per year for 20 years and then it is paid in full for the rest of their lives.

I agreed to pay the premium for the first 4 years until they graduate college.  Then they are responsible for the remaining years.

Did I get them a small life insurance policy, just enough to cover the funeral? 

No, I got them $250,000 of life insurance coverage.

Why?

Today, they do not have debt or many assets, other than a bank account, but I know that is going to change.   I wanted them to have enough coverage so that if they can not get insurance in the future, the amount of coverage that they have now is substantial enough to give them a decent level of  protection.   It can be there to help with family expenses, mortgage, and debts that they may have as they progress through life.

My dad told me that those who do not have life insurance, do not have anyone they love.  Because, if they have people they love, they want them taken care of when they are no longer here.

So, you might have a child, grandchild, niece or nephew that are graduating this year, life insurance is a great way to show them your love.

I know that they are young, but that is why the coverage is so inexpensive.    My daughter, a few months before graduation was diagnosed with an ovarian cyst.   (A very large one that was over 30 pounds.) There was a concern that it could have been cancerous.  Thank goodness it was not! But that scare showed me the reality, just because they are young does not mean that bad things will not happen.

The cost for the 20-year paid up whole life policies were between $550-$750 a year.     This is less than $63 a month.  Which is much less than the average graduate receives in gifts.

And, they only pay for 20 years.  So, by the time that they are having their family and bills are growing, they do not have to worry about paying for life insurance.

I could have lowered the annual cost by having them pay over a longer period of time.  Or I could have reduced the overall cost by paying the entire premium in a single pay option.

So, as you think about how to celebrate the graduation of your senior, consider life insurance.  You would be protecting them now and for the future.

Give us a call at Huff Insurance for questions on life insurance and how we can help you have a plan for your graduating senior.

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