The Perfect Gift for Your Grandchildren is not an iPad or toy. It’s life insurance.

Updated on February 26, 2021
Susana Zinn headshot copy

Becoming a grandparent is one of the most exciting life events and it is filled with happy occasions like birthdays, holidays, graduations, and more.  Over the years you’ll be spending a lot of time thinking of what gifts to buy!  A perfect gift is one that is thoughtful, useful, and extremely valuable. Indexed Universal Life insurance checks off all of those boxes and it will truly communicate how much your grandchildren mean to you. Besides you will be remembered by them long after you are gone.

As a grandmother myself, I chose to gift life insurance to my grandchildren for several reasons:

  1. Life insurance is a gift that lasts a lifetime.  It creates a living legacy that accumulates cash value with each year that passes and will truly help your grandchild with the head start they need to a secure financial future.
  2. Unlike a toy, life insurance does not wear out, break or get boring.  As long as the premiums are paid, the policy will be there forever.
  3. Many gifts lose value over time, but life insurance is just the opposite.  The policy has the potential to accumulate cash value which can be borrowed for any purpose. That cash is your legacy for your grandchild and will be extremely helpful to pay for college, buy a home, or start a business.
  4. What type of gift has tax advantages? If you guessed life insurance, you are correct!  Cash values that accumulate in a life insurance policy are tax deferred.  You should certainly speak with a tax advisor about the details, but it’s one of the many benefits.
  5. Life insurance policies can help guarantee future insurability no matter if there are changes in health.  Simply put, once the life insurance policy has been issued, coverage cannot be canceled as long as all required premiums are paid.

When my grandchildren were born, I decided to give them Indexed Universal Life Insurance, which is a permanent life insurance that provides a death benefit. Although it might sound scary, no one has to die to use it!  My favorite way of explaining this is thinking about your favorite combo meal. It has several benefits for the same price.  For example, when your grandchild is elderly, he or she will have money to cover extra expenses such as care.  If while growing up there is an illness, there will surely be additional medical expenses. The policy provides money to cover any financial gaps, so the parents don’t have to struggle.  Should there be a death, tax-free money is available for loved ones.

Usually the next question that someone will ask me is how much does it cost? I usually answer about the price of a dinner out with the grandkids!  For example, my granddaughter Amanda is five years old right now and I’m willing to put aside $100 a month. When Amanda is 70 years old, she will have a tax-free death benefit of $1,300,000. The money is also available when she needs cash for a dream home at age 40, she can get a loan for $85,700.  Or if she waits for retirement at age 69, a loan for $1,130,000 would be available.  The cash value increases every year. Other scenarios include if Amanda is gravely ill at age 65, she will get a lump sum of over $700,000 while she is still alive.  If she has a chronic illness, like 70% of Americans actually do at that age, the payment can get up to $13,000 a month.

Why do I recommend this kind of policy? Scary, but true, the main cause of bankruptcy in the United States is medical bills. Many of the GoFundMe campaigns and stress related to finding the money can be avoided with a life insurance gift.

One of my favorite quotes is from Warren Buffet when he said, “Someone is sitting in the shade today because someone planted a tree long ago.” So, the next time you need to find a gift for your grandchild, think about Indexed Universal Life Insurance.  It is a gift that gives back because you know that it will make a positive impact in the lives of people that you care the most about.

Susana Zinn

Susana Zinn is a noted business leader with global experience in the financial, manufacturing and insurance industries. Life events forced Zinn to reinvent herself five times. She is the proud grandmother of two grandchildren with a third one on the way. She currently lives in Los Angeles, California and can be contacted through


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