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Gifting A Life Insurance Policy

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April 17, 2023


Finding a gift for a loved one that will actually get used can be a tough feat. This is why gifting a life insurance policy can be a great idea. And although gifting a life insurance policy may not be as glamorous as a luxury blanket or a new iPad– it is truly a gift that will last a lifetime – and then some!

Gifting a loved one their own life insurance policy can guarantee their insurability later in life, protect them against the unknown, and provide access to cash for future endeavours.

Want to learn more about why gifting a life insurance policy is a great option and how you can get started today? Then keep reading because we dive into these topics and more in today’s blog post!

Already sold on the idea of gifting someone with their very own policy? Get in touch! We’ll answer all your questions, and if you’re ready, help you acquire the best policy for the person you’re gifting it to.

Go Straight to The Information You Need Most

Who Can You Gift A Life Insurance Policy To?

A life insurance policy is a great gift for anyone you have a vested interest in (such as a parent, sibling, or spouse) who doesn’t already have an existing policy.

It is an especially great gift for a young relative like a new niece or nephew. The older we get, the more expensive insurance becomes. So, buying it for a child when it costs the least is extremely advantageous– as the premiums are locked in for life.

Why A Life Insurance Policy Makes A Great (And Unique) Gift

Regardless of who you decide to buy a life insurance policy for, it has many advantages. Learn all the reasons you’ll be Aunt/Uncle/Wife/Husband/Kid of the year for giving the gift that keeps on giving.

Reason 1: It Will Last A Lifetime and Beyond!

As long as you (or someone else) continue to pay the premiums– the recipient will be covered for life. So regardless of what happens down the road, you’re giving them the peace of mind of knowing they– and their loved ones– will be protected.

Reason 2: It Can Provide $$ For Future Endeavors

Did you know that purchasing a permanent life insurance policy for a newborn, baby, or child means setting them up for life? Life insurance policies provide death benefits that grow over time to offer a bigger and bigger payout. They also offer ‘cash surrender values,’ which means they can be accessed whenever your child/niece/nephew needs financing in the future (for example, when they want to put a down payment on a home).

This can also ring true when getting a permanent policy for an adult. However, their death benefit won’t have as much time to grow, so purchasing a policy while someone is young will help them in more ways than one.

Related: Living Benefits & Life Insurance for Children and Babies in Manitoba

Reason 3: It Guarantees Insurability

Health can change at any time. Insuring a loved one while they’re healthy means guaranteeing their coverage well into the future — no matter what. Plus, it can let them purchase more insurance in the future without requiring any medical evidence (This alone is a huge gift!).

Let’s also not forget that the older we get, the more expensive insurance becomes– so buying it for a child or even your spouse when it costs less is extremely advantageous– as the premiums are locked in for life.

Reason 4: It Gives YOU Peace of Mind

Life insurance is more than just a gift for a loved one, it can also be a gift for you as well.

Knowing your loved ones are covered will give you comfort. And, if they ever need to use that insurance, it will help cover the costs of medical bills, freeing everyone up to focus on what matters most — them.

How To Gift A Life Insurance Policy

So, if you want to opt out of giving a traditional gift and go with something more unique that will make a big impact in their lives, we’ve got you! Follow these three steps to get on your way to giving them a gift that won’t be forgotten.

Step 1

The first step in choosing a policy is meeting with an advisor and learn about your options. Since everyone is unique, their policy should be too.

Step 2

Determine what policy best suits the recipient.

Our advisors are well-versed in all the life policy options that exist– so they can offer policy recommendations based on your needs. They will also help you review plan options and answer any questions that you may have.

Step 3

Once you’ve collected all the necessary information and decided what plan you want to go with, we’ll help you and the person you’re insuring complete the application.

As the owner, you’ll make the premium payments for the insured (the person you bought the policy for). You can also transfer ownership to them in the future – should you wish. Until then, this can be the gift you continue giving them every year. So no more last-minute gift scrambling.

Give The Gift That Won’t Be Forgotten

Not only is life insurance a unique gift that you know will benefit a loved one, but it truly is a gift that will last a lifetime.

If you’re interested in gifting a life insurance policy, start with a commitment-free quote. From there, we’ll answer any questions you have, and, if you so choose, help you lock in the best rate.

Plus, we’ll be by your side the entire way. That includes after the policy has been purchased.
So, what are you waiting for?