Can you give life insurance as a gift? Yes! It is a meaningful and touching way to show how much you care. Here are a few quick things to know about purchasing life insurance as a gift this holiday season.
Why Life Insurance Can Be the Perfect Gift
Gifts are a joy to give and receive, but giving a life insurance policy can be surprisingly meaningful. These policies provide something unique: long-term security. Unlike the usual sweaters, slippers, or even pricey devices, life insurance offers financial protection, and some policies increase in value and can become a valuable asset. It is truly a gift that keeps on giving.
Types of Insurance for Gifting
- Term Life Insurance: The most affordable option, term life insurance covers a set period with a guaranteed payout to the policy beneficiaries if the insured individual should suddenly pass away—and provides tax-free income when it is needed most.
- Whole Life Insurance: This insurance offers lifelong coverage that becomes an asset over time. Over time, these policies allow you to borrow for future financial needs such as college tuition.
- Universal Life Insurance: These policies offer more flexible premiums, adjustable death benefits, and earn interest and cash value.
Three Ways to Gift an Insurance Policy
- Buy a new policy: If you want to purchase a policy for a loved one, they are protected in life’s most difficult situations.
- Transfer an existing policy: If you already have a policy, you can work with one of our agents to update your beneficiaries to suit family changes or convert a term life policy to whole life.
- Fund an existing policy: If your family member has a policy and is having trouble paying the premiums, you can offer to pay the premiums to keep it in force.
Discuss your desire to make a meaningful gift to a loved one with one of our experienced and knowledgeable agents, and they will walk you through the steps.
Giving to Those You Love
Because of the nature of life insurance, you can purchase a policy to give to your loved ones. Key business partners or employees can also be insured to protect your company’s financial health. When it comes to the holidays, giving to those you care about, such as your significant other, children, or other loved ones, can help them have a safer financial future.
The Gifting Process: An Overview
Here’s a simple guide to gifting a life insurance policy to someone you love:
- Research: Start by comparing different policy options. Take time to understand the long-term benefits and what would be best for your loved one’s situation.
- Choose: Decide on the best coverage and amount you want to give.
- Consult: Work with one of our professional agents to help make the best decision for your budget and answer your questions about the best policy options.
- Gift: Give your loved one a lasting gift of peace of mind. You can even make it special by placing the policy documents in a box and topping it with a bow!
- Explain: After the excitement of opening presents is over, spend some time with your loved one to explain the policy and ensure they understand how it works and how you plan to fund it for them.
Giving the Gift of Peace of Mind
Life insurance is unique in that these policies show you care for years and years to come. If you want to donate to a loved one’s future well-being and happiness, speak to one of our helpful local agents today. We can walk you through the simple process so you are confident you have chosen the ideal policy to protect the people you love the most.