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What Is

Juvenile Life Insurance?

Juvenile Life Insurance is a tax-advantaged financial product that insures the life of a child. It provides cash value accumulation, tax-deferred growth, and guaranteed insurance for life.

The policy can be fully funded in five years or less and secures guaranteed lifetime coverage at the lowest cost of insurance. The policy's accumulated cash value can be used to pay premiums, eliminating the need for further out-of-pocket contributions. The owner can withdraw or borrow from the cash value at any time, for any purpose.

Juvenile Life Insurance can be used to accumulate and transfer significant wealth to your loved ones - estate, gift, generation-skipping and income tax free.

Parents and grandparents can select between whole life or indexed universal life.

Whole Juvenile Life is permanent whole life insurance that increases by a minimum guaranteed interest rate, plus a non-guaranteed dividend declared annually by the insurance company.

Indexed Juvenile Life is permanent universal life insurance that has cash value increases linked to the performance of an equity index (e.g., S&P 500) up to a certain percentage (a "cap") with downside protection (a "floor").

Who Needs It?

The decision to purchase Juvenile Life Insurance is not based on insurance need. Parents and grandparents select Juvenile Life Insurance because of its tax-advantaged lifetime savings and growth potential, and lower annual premium rates. Juvenile Life Insurance is an ideal gift for children and grandchildren and a flexible financial tool for parents and grandparents who want to:

  • Safely Outperform Other Financial Products
  • Save for College, a Wedding, or a New Home
  • Grow Cash Value Tax Free
  • Transfer Wealth to Reduce Taxes
  • Ensure Financial Security
  • Guarantee Future Insurability
  • Support a Favorite Charity

To see the growth of a Juvenile Life Insurance policy and how it helps families safeguard their financial future, click here.

How Does It Work?

Juvenile Life Insurance is a permanent life insurance policy. It takes advantage of the low cost of insuring a child to create a powerful tax-deferred savings and growth vehicle.

Insurance companies generally require parents to have insurance coverage (typically twice the coverage sought for a child) before purchasing a Juvenile Life Insurance policy. There are fewer restrictions for grandparents purchasing a policy for their grandchildren.

Whole Juvenile Life Insurance hasan interest rate set by the insurance company at policy inception and the rate is guaranteed for the life of the policy. In addition to the guaranteed interest rate, non-guaranteed dividends are paid annually. New Amsterdam Life only works with top rated insurance companies that have never failed to pay a dividend.

Indexed Juvenile Life Insurance has growth based on annual increases in the value of a specific equity index, such as the S&P 500. The growth credited is guaranteed to not be less than 0% and certain companies offer higher minimum growth guarantees. The policy does not directly participate in the stock market or the S&P 500 index.

How Much Should I Contribute?

To determine the appropriate amount of Juvenile Life Insurance, consider how much you want to save for the future financial security and prosperity of your children and grandchildren.

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