While many people are used to giving out cars, electronics, clothes, fragrances, and jewelry as gifts, you can take it an extra mile by gifting someone with life insurance. With life insurance, you are giving that special person, organization, or foundation something far much greater than the usual gifts we are accustomed to. You can buy a life insurance policy as a gift to show your affection, support, or even honor a loved one in a special way.
Who are eligible for the gift of life insurance?
Well, there are many candidates whom you can gift with life insurance, including your spouse, your kids/grandchildren, yourself, charity foundations, or even pets, among others.
Which types of life insurance are ideal as gifts?
There are several options to choose from when planning to give life insurance as a gift, including whole, universal, and term life insurance plans.
How affordable is life insurance as a gift?
Most people probably think that life insurance policies are mainly tailored for the rich only. What many of them fail to understand is that life insurance is not only easily available but also affordable. Today, you can get life insurance for as little as $10 every month. It’s beyond any doubt that you can give someone you truly love Life insurance as a gift without straining financially.
What are the benefits of buying a life insurance policy as a gift?
1. It’s affordable and economical
You can always take care of a loved one or your favorite charity’s future by purchasing life insurance for them. Interestingly, it’s cheaper than you thought. For a minimum of $10 per month, you can change someone’s life entirely. It’s the smartest way of providing your best charity or loved one with future financial stability after death. The fact that life insurance proceeds are tax-deductible makes it even more economical.
2. Plan Your Estate in advance
Another incredible thing about gifting life insurance to those you love is that it empowers you to plan your estate in advance. This estate planning strategy works very well since death proceeds are income-tax-free subject to interest accruement.
3. Private and confidential
A gift of life insurance is basically a private affair and will never be made public until after your demise. This makes it perfect for those looking for safe ways to distribute their wealth without conflicts.
4. Offers more flexibility
Naming a charity of your choice or loved one gives you as the donor more flexibility in terms of defining how the proceeds are to be used. Usually, this is done through a donor-advised fund which guarantees continuity of a donor’s legacy. Generally, proceeds are used according to your last wishes, and you’re free to make as many changes as you wish.
5. Potential for larger ultimate benefits
Giving life insurance to your dependents, or charity can be advantageous as it provides a potential for larger gifting. The monthly premiums you pay will gain substantially before a policy can mature. All these make your gift larger over time, and beneficiaries of that policy will have something to be thankful for when they become eligible to receive the death proceeds.