Leaving a Financial Legacy to Your Great Grandchildren
by: Ron L. Bruster
Children are Special... Especially when it comes to Life Insurance. Children are expected to be on the planet for a long time (0-100+ years, according to the new Mortality Tables.), so their life insurance rates are less expensive than an adult or even a teen! Once a child passes the age of 14, they fall into a different pricing category. It's logical. When is the last time you had one of your teenagers plop on your lap and tell you they love you?
Life becomes more dangerous for teens after the milestone year. They are no longer considered cute and cuddly by the insurance industry, and subsequently cost a few pennies more to insure than your toddler. (But teens still get a better rate than you or I.)
But to make a short story long, I give you a sample illustration of the power of youth: "The Merry Child Story"
This is Merry Child. She is only 2 years old. Her parents want her to have a great life when they are no longer around to take care of her. (The Childs plan to move to Venezuela when they retire.) They have opted to insure their precious little bundle of joy for $500,000.50 (the 50¢ is to prevent having more insurance on Merry than on themselves, but sorry, my illustration software rounded the 50¢ up to $1.00 anyway, so Merry has the same amount as her folks).
Since I am their agent, and did not get this same financial opportunity from my parents when I was a toddling agent, I suggested that the Childs sink their hard-earned Benjamins into a Flexible Premium Universal Life Insurance Plan, like their own. (Try saying that one ten (10) times!) They will pay a $437.50 quarterly premium, which is slightly less than the cost of 20 pounds of Starbuck's® Black Apron Exclusive® Costa Rica Whole Bean Roast, La Candelilla Estate Coffee®. (Try saying that once!)
At age 18, Merry is guaranteed to have a college fund of $20,710.00, (possibly $27,614.00, based on current interest rate), and a death benefit of $500,001.00. After four (4) or five (5) years of higher learning, Merry will get a super job in Business, and begin to repay the loan she borrowed from her Flexible Premium Universal Life Insurance Plan, with a little help from good old Mom and Dad.
With ten years of rigorous ladder climbing under her belt, (and at the tender age of 33), Merry gives in to her fiancé's proposition of marriage and embarks on her next wonderful adventure, with her new husband Joselph Manger, (pronounced: Yoself). Her cash value is now a guaranteed $49,826.00, (possibly $90,572.00, based on current interest rate), and a death benefit of $500,001.00.
Merry and Joselph buy a home and start working on a family of their own. They decide to follow in the footsteps of Merry's parents, the Childs, and have only one little bundle of... you know. By the time there new son, Michael, is a toddler, Merry is 36 years old. Her Flexible Premium Universal Life Insurance Plan cash value is worth $56,647.00 to $110,159.00, (depending on guaranteed or current interest rate), and she has a long-standing death benefit of $500,001.00. She decides to purchase a similar plan for Michael. (Don't worry, we won't get into that.)
Seeing that their daughter Merry is in the safe and loving hands of Joselph, the Child's, who are now retired, have opted for Life Settlement. They cash in their own $500,001.00 Flexible Premium Universal Life Insurance Plan for a measly $250,000.00, and move to Venezuela . Their $250,000.00 becomes $ 536,150,000.00 when converted to the Venezuelan Bolivar (VEB). Though their Español is really not that good, they live happily ever after, in the lap of Venezuelan luxury.
Another 29 years whisk by. Michael has finally moved out of the house,(yesterday), and the Mangers, (Merry and Joselph, come on, keep up), decide to retire on the beautiful shores of La Jolla, (pronounced: La Hoya), California . Merry's Flexible Premium Universal Life Insurance Plan cash value, (depending on who you ask), is now worth $73,862.00 to $575,836.00, and her death benefit is $702,520.00. Life is good, so she decides to "let it ride" another 30 years or so. (Seeing how Michael has decided to become a Missionary, and single-handedly save the world. You go, Michael!)
At age 95, Merry, who is now a widow and grandmother of 12 fledgling missionaries, logs in to the Virtual Reality Online Portal, (formerly known as the internet), to check the status of her Flexible Premium Universal Life Insurance Plan. Her cash value is estimated to be worth $2,744,076.00, and her death benefit is $2,771,517!
Five years later, at age 100, Merry commends her spirit to her Heavenly Father. She becomes a guardian angel to her great grandchildren, when she leaves a legacy of $3,595,193.00, tax-free, to her heirs. (Not to mention her La Jolla Estate, a Venezuelan Villa and a warehouse full of luxury automobiles!)
The moral of our little story? GET A LIFE!! (A life insurance plan, that is, for your little merry child.)
About The Author
Ron L. Bruster is a Financial Buisness man with a love for family and good clean fun. He has been everything, in life, from a Migrant Worker to a Corporate Vice President; to a Hollywood Stunt Fight Coordinator to an Internationally Published Writer; to a Security Officer to a Sucessful Life Insurance Agent; to... Well he's not dead yet! Copyright 2005 RLB4Life, All Rights Reserved
www.rlb4life.com.
