A cash value life insurance is a great present to start for your kids or grandkids when they are young. The premiums are very low and it locks in their age for the lifetime of the policy. I typically recommend putting extra money each month above the premium amount to build the cash value quicker and so that the child has a larger amount of cash value to draw on when the child is old enough to manage it themselves.

On top of that it can be a great vehicle for parents to use to borrow along the way. For example, your son Timmy needs braces when he is twelve and now you have a pool of money that you can borrow from to pay for the braces. The main thing to remember is to pay the policy back at a fair interest rate above the insurance company’s interest rate. The beautiful thing for the child is that when they inherit the policy the death benefit has grown to a larger amount with paid up additions and they should have a significant amount of cash value to get their adult life going. On top of that, it can be a great place over the course of their life to accumulate a very substantial amount of money for retirement, etc. They will also have lifetime insurance coverage when they have their own family.

If you are considering a good gift for your child or grandchild, this is a very valuable gift to give.