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Besides protecting your child's life $50-$100 month premium can accumulate thousand's of dollars to use for your child's first car, education, down payment for their first home, wedding, or emergency fund. -A source of liquidity. You can borrow against a life insurance policy’s cash value without a credit check or paying taxes but be aware that the loan might affect the policy’s longevity. Also, you can withdraw what you’ve paid in premiums tax free and pay income tax only on gains if you choose to surrender the policy.
Benefits of Life Insurance for Kids
Besides protecting your child's life $50-$100 month premium can accumulate thousand's of dollars to use for your child's first car, education, down payment for their first home, wedding, or emergency fund.

-A source of liquidity. 

You can borrow against a life insurance policy’s cash value without a credit check or paying taxes but be aware that the loan might affect the policy’s longevity. Also, you can withdraw what you’ve paid in premiums tax free and pay income tax only on gains if you choose to surrender the policy.

-Compound interest. 

Everything else being equal, the longer you have money working for you, the more you’ll ultimately have. The key to building wealth is to start saving early enough where your assets will have a chance to fully utilize compound interest. Unlike a college savings account or retirement plan that has a 20-30 year life span, a life insurance policy can stay in force 80 years or longer!
iTech Dunya

iTech Dunya

iTech Dunya is a technology blog that specializes in guides, reviews, how-to's, and tips about a broad range of tech-related topics..

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