I want to take a few moments to explain how juvenile life insurance can be used to accumulate and transfer significant wealth for your children or grandchildren – capital gains, estate, gift, generation-skipping and income tax free.
Juvenile life insurance is a tax-advantaged financial product that leverages the lower cost of insurance for a child to provide tax-deferred growth, fully-paid guaranteed insurance coverage for life, and flexible tax-free access to cash value, at any time, for any purpose.
Juvenile life insurance is ideal for parents and grandparents who want to:
- Save for college, wedding, a new home or any other goal
- Grow cash value tax free
- Protect assets from creditors, lawsuits and (ex-)spouses
- Transfer wealth to reduce taxes by taking advantage of generous lifetime joint gift tax exemptions that will expire on December 31, 2012
- Guarantee future insurability for children and grandchildren regardless of future health, lifestyle or residence
- Ensure financial security for children, grandchildren and great-grandchildren
As owner of the policy, you control access to the funds and may take tax-free withdrawals or loans at any time, for any purpose, or you may appoint a custodian or trustee to manage the policy. When your child or grandchild will have an insurance need of his or her own, you can transfer the fully-paid permanent insurance policy (regardless of future health or insurability) to protect and provide savings for their future family — an additional gift for life that can provide a tax-free legacy for your future grandchildren or great-grandchildren.
To learn more about child life insurance or juvenile life insurance can fit into your financial planning goals, contact New Amsterdam Life at 866-881-6262.