Case Study – Juvenile Life Insurance Policy

John and Mary, proud parents of a one-year-old Jill, were exploring ways to secure their daughter’s financial future. After careful consideration, they decided to invest in a juvenile life insurance policy for Jill. This decision would prove to be a gift that would benefit Jill for decades to come.

The policy they chose was a $100,000 death benefit, max-funded Indexed Universal Life (IUL) insurance policy. John and Mary would be the policy owners, with themselves and potentially Jill’s siblings as beneficiaries. The monthly premium was set at $156, which they would pay until Jill turned 65.

What made this policy particularly attractive was its potential for growth. The death benefit was projected to increase to $2,800,000 by the time Jill reached 65. Moreover, the policy came with a guarantee that the investment growth would never fall below 0.25%, providing a safety net for their investment.

Perhaps the most compelling feature of the policy was its potential to provide Jill with a substantial tax-free retirement income. Projections showed that from age 65, Jill could receive $260,000 per year for 25 years, all tax-free.

As Jill grew, so did the value of her policy. When she turns 25 and gets married, John and Mary make a significant decision. They transfer ownership of the policy to Jill, who then names her husband as the beneficiary. This transfer of ownership demonstrates the flexibility and long-term value of the juvenile life insurance policy.

Jill, then becomes responsible for the premiums, continuing the $156 monthly payments. The policy’s death benefit will have grown to $256,000 and will still be on track to reach $2,800,000 by age 65. The projected retirement income remains unchanged, promising Jill financial security in her golden years.

This case study illustrates how a juvenile life insurance policy can evolve into a powerful financial tool. It not only provides protection during childhood but also offers guaranteed insurability and potential for significant cash value accumulation. The policy’s ability to be transferred to Jill in adulthood ensures that the benefits of early investment continue to serve her throughout her life.

Moreover, this approach to financial planning can create a legacy of financial security. Just as John and Mary invested in Jill’s future, Jill now has the opportunity to do the same for her own children, potentially creating a cycle of financial stability that spans generations.

In conclusion, John and Mary’s decision to purchase a juvenile life insurance policy for Jill exemplifies how early financial planning can yield substantial long-term benefits. It provides not just protection, but also a foundation for lifelong financial security and a means to pass on a legacy of financial responsibility.

In addition, the above financial benefits, these policies also provide:

The above case study is based on a 1-year-old child and a $100,000 death benefit.  The numbers will vary in direct relationship with the age of the child and the amount of life insurance chosen.  In all cases, though, the return on investment will be dramatic.

If you would like a no-obligation quote for a juvenile policy, please contact me:

Mel Kaye

Email: Mel@LifeInsuranceSafeZone.com

Text:      (805) 300-1769

Bookmark the permalink.

One Response to Case Study – Juvenile Life Insurance Policy

  1. Learn German says:

    It’s great to see parents planning so far ahead for their child’s future. A juvenile life insurance policy like this provides not only security, but also the potential for impressive long-term growth. It’s a smart way to leverage time and compounding interest.

Leave a Reply

Your email address will not be published. Required fields are marked *