Many grandparents feel the need and desire to do something special for their grandchildren.  They understand that life insurance can be a solution, in part, of some of their aspirations for them.

The grandparent's gift of a whole life insurance policy is the solution.  This allows the grandchild the ability to utilize the cash value accumulation within the policy while at the same time providing through the GIO (Guaranteed Insurability Option) the ability to purchase additional life insurance regardless of health issues later on in life.  This helps grandparents ensure that their dreams for their grandchildren at different life stages will be able to be met by offering read cash to help fund higher education, a down payment on a home, or long-term financial security.

A Whole Life plan offers cash values that are guaranteed and will be there when needed, and health, liike money, can be here today and gone tomorrow.  The GIO is a valuable asset to ensure future purchases of life insurance.

Here's how it works.

1. You, the grandparent, purchase a life insurance policy on the life of your grandchild.
2. The policy is held by the parents as custodians under the Uniform Transfer to Minors Act.
3. The grandparent pays the premiums for the policy as gifts to the grandchild.
4. Premium payments qualify for the $12,000 annual gift and generation skipping tax exclusions.
5. The trustees can use the policy funds for the benefit of the child until the child reaches the age of majority.  At that age, the grandchild becomes the owner and has complete rights to the policy.
6. The cash value of the policy accumulates on a tax-deferred basis and may be used by the grandchild for any purpose during his or her lifetime.