Graduation: Give a Lasting Gift to Your Children

When your children graduate from school, it is an exciting yet scary time for everyone. They have the whole world ahead of them to do what they please. Whether it be heading straight to college, jumping into the workforce or travelling around the world, life is at their fingertips.

But with this sense of freedom comes a great sense of responsibility – and worrying parents. Your child’s safety and protecting their future are now top priorities. So while you are debating on the perfect graduation gift for your child, why not consider something that will help protect their future? Here are a few reasons why gifting life insurance to your child is a good idea.

It’s A Stable, Reliable and Lasting Gift

The gift of life insurance is not going to fall apart or go out of style the next year. Unlike buying a material object as a present, a life insurance policy will be there for your children. As long as premium payments are kept up, it won’t be going anywhere for quite a while.

It Provides Protection

A life insurance policy is there to protect your loved ones in case of unexpected death. It is there to pay funeral costs, cover any outstanding debt, and cover the loss of family income. Protect your child’s future and their beneficiaries in case the worst were to happen.

It Can Potentially Grow

Certain life insurance policies have an option to grow cash value, which is different from the death benefit, and is money that can be accessed while living. A permanent life insurance policy would give you this opportunity. So consider this a growing gift that could help them get a head start in life.

It Can Be Useful Later in Life

The first thought of life insurance is about death and who the beneficiary is. Although valid, some plans do offer more than just the death benefit. Like the cash value of permanent insurance discussed above, some policies let you access them throughout your life.

By setting your children up with a permanent insurance policy, you are also setting up their future financially. Because of this cash value option, the policyholder can potentially borrow the saved money. They can use the money for something significant like a down payment on their first house, helping pay for (or pay off) college loans or simply help provide a financially comfortable life.

But there is something to consider if this is the path they want to take. Each time you borrow from your life insurance policy, it can reduce the death benefit payable if it needed to kick in. The loans against your policy may also accrue interest.

Premium Payments at Their Lowest

When you buy a life insurance policy at a young age, you are more than likely buying at the best time possible. Life insurance takes into account your age, health and lifestyle before approving your request. The younger and healthier you are, the lower the premiums. This is because you are of less risk to the insurer of having to pay out the death benefit. On the other hand, if you are older and in poor health, your premiums could be significantly higher.

Talk with your trusted insurer to see the best options for setting your child up with life insurance. Whether it be establishing a policy and paying their premiums for a bit, or putting them as your beneficiary, there are many ways to gift life insurance. Give them a unique gift to last a lifetime.

Sponsored by Midland National

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Written By
Sydney White is a Texas-born stay at home mom who enjoys spending time with her family, bargain hunting and, of course, writing. She is currently the editor-in-chief of

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