5 Reasons To Buy Whole Life Insurance For Children

One of the most common questions that I get is, Chris, if whole life insurance and infinite banking is so good for me, how would it be for my kids? And the answer is that's a great question. It's actually quite phenomenal for your kids. So in this video, what I'm going to do is I'm going to go over the five reasons that I believe whole life insurance should be used for your children, the reasons that you should actually start implementing and start a savings plan with an infinite banking policy, with a properly designed whole life insurance policy for your children as soon as possible. Let's get into it. If you haven't already, make sure you subscribe and hit the bell. That way you're notified every time I launch a new video, because I'm launching videos like this almost every single day. Hope you enjoy. Let's go. All right. What's going on, Cash Flow Hackers? It's Chris with Life 180. We are talking about whole life insurance for children and the five reasons why you would want to buy whole life insurance for your kid today. Now, first and foremost, reason number one out of the gate is because it is setting up a financial foundation for your kids. Now, if you're a subscriber to this channel, you know that I believe the power of building your financial foundation on safety is of utmost importance to you achieving your financial goals, right? So what does that mean? That means we got to save money before we invest, but we need to save with the intent of investing. Unfortunately, most kids go to school, get a job, invest in their 401k, and they start taking on too much risk too soon. But what we know we need to do is we need to save that emergency fund. And for most people, that emergency fund is, let's say, six months to a year of income. And so when we look at that on the bare minimum of that, let's say six months, 50 grand of income, you're talking about needing $25,000 of an emergency fund right out of the gate before you should technically start investing and taking on any kind of significant amount of risk. Now, that said, if you were to look at a kid getting out of school, it's going to take them a while with all their student debt and just the cost of living getting out right now. It's going to take them a while to build up that cash reserve account for emergency funds so they can actually go and be a good investor. What you have the ability to do as a parent right now starting your kid off young is helping them by building their foundation, building that financial foundation, helping them save that money sooner. That way, by the time they start their adult life, they already have one of the hardest goals ahead of them. I don't know if you know this or not, but less than 64% of Americans have access to $2,000 in liquid accessible accounts if they need it for emergency or opportunity. To me, that is one of the greatest pandemics in this country that nobody is talking about. By doing this, by getting a whole life policy for your kid, you are setting them up to be ahead of almost all kids in their 20s. So that's going to put them in a position where they have a massive strategic advantage when it comes to seeking opportunity when that opportunity is presented to them. So the second reason whole life insurance is great for your kids is college planning. Let's face it. Most people rely pretty much solely on 529 accounts and paying for college right out of their income. The problem with those two things is A, 529 accounts, you're taking on a lot of risk. And yes, there are age-dated funds, kind of like the target-dated funds, but the bottom line is you're still taking on a fair amount of risk. And at the end of the day, for most people when they start saving for their kids college, they're within 10 to 15 years of college, obviously, and the market volatility in those timeframes can be astronomical. Just look at the past 15 years that we've had in the stock markets and the booms and the busts that we've had. And it just goes to show that if you have a down year, a really bad year, imagine 2021 is when your kids started college and you lost 30% the year before in your 529, I've heard stories, this happens, right? It's no different than losing a bunch of money the year before you retire. All of a sudden, you thought you were in good shape and now you're not. You can't have your saving for college in an account that has a lot of risk. You just can't do it. The other component to 529s is that it counts against you on your expected family contribution. The calculation that they utilize to calculate your expected family contribution or EFC is extremely loaded when it comes to your 529. It's going to really hurt your EFC number. And most people don't realize, but there's a sticker price and then there actually is like a net price. If you pick the right schools and you keep your certain assets and incomes at certain levels, you can make it so you qualify for more money if you pick the right schools and have your assets aligned in the right way. Having your money in a whole life policy makes it so you don't have to declare it on your EFC and it actually can reduce your expected family contribution amount, reducing the cost for college. So you don't just save for college, but you save on college. And that's a beautiful thing. I actually did a webinar. If you want to go deep into this, I'll put it up here. You can watch it. It's about an hour and 20 minutes long, full transparency, but it is one of the most in-depth college planning webinars that you're probably ever going to find. So the third reason, and I talked a little bit about this in number one, but it is to create an opportunity fund for real estate, for business, whatever it is. Let's face it. I think right now in the economy that we're in, the gig economy, the entrepreneurial economy, people, there's never been a time more than right now that people have had the need to go and create income on their own. Maybe it's a side hustle. Maybe they go to college, they get out, they have a regular job, but they want a side hustle for extra income, or they want to grow into becoming their own business. Having this opportunity fund can seek out opportunity in down markets for real estate investing. It could seek out opportunity for purchasing a business. It could seek out opportunity for a lot of different things that are around. I know people that were buying classic cars that were distressed and they were fixing them and flipping them and make a lot of money. There's all sorts of ways that you could do it, but access to capital is king. And by setting your kid up with a whole life policy early, you can transition the control of that policy over to them in their 20s, or even better yet, you could keep control over it and you could kind of be their mentor. And they could come to you and you could say, hey, listen, son, daughter, you've got this pile of money that's there for opportunities. So I want you to be looking for these opportunities. And then when you find them, you come to me and we'll go over it together to see if it's the right opportunity. I will shepherd you through this process. And if we find one that makes sense, I will allow you to have access to this capital. I will act as if it's your capital to go out and take risk. But, you know, you as the parent get to be there to make sure that they're not just being whimsical and being kind of like irresponsible and blowing that money. It's a really powerful thing. The fourth reason that you want to get life insurance, whole life insurance, specifically for your kids is that you lock in their insurability. Let's face it, we're never healthier typically than we are when we're kids. And when you look at it from that perspective, a lot of things happen to people as we get older. We get chronic illnesses. We get into accidents. We get hurt. Unfortunately, if you're doing what I do, I see a lot of horror stories. I talk to a lot of people. Heck, this week I've had conversations with three people that have term insurance and they bought 10-year term insurance and they thought they'd be fine. But in the next decade, they realized they were no longer insurable. This happens. By doing this, you at least lock in insurability for them so they know they have it for the rest of their life. And that's an amazing thing. That's a gift to a certain percentage of the population that if you don't have it, if you don't get it early, when you know you can get it, you may not be able to get it later when you take it for granted. And the fifth reason that I suggest everybody buy whole life insurance for their kids is that you're creating intergenerational wealth. So you have life insurance on yourself. You buy life insurance for your kids. What you're doing automatically is you're setting your grandkids up for success. And it's not just in creating generational wealth or intergenerational wealth for your children and your grandkids because of the fact that there's a death benefit. Because yes, there is. But all the things that I've said to this point in time about having the opportunity fund and how to save and have the emergency funds and all these things in place, what you're doing is you're setting financial principles up. You're teaching your children how to view money. I would encourage you as the policy's growing, when they hit their high school years, you start going over the policy annual statements with them and talking to them about it, letting them realize the asset that they're building up. That way when they hit their 20s, they are thinking about money differently. It's going to get them more intentional about budgeting, more intentional about seeking opportunity, more intentional about going out there and creating on their own. And in doing that, what you're doing is you're going to teach them financial principles. You're going to teach them to be driven, teach them to take radical self-accountability for their own life. And you guys can partner up on this until you decide to turn the control of the policy over to them. And in doing that, you're going to teach these financial principles to them. And what are they going to do? They're going to turn around, they're going to replicate that process. Because whether we do it right or we do it wrong, and hopefully we do more right than wrong, most of us do, our goal is to not screw our kids up. I got three of them and I worry about this every single day. Our goal is to not screw our kids up. And so if we can just get them in a situation, we're going to do plenty of things wrong. My parents did plenty of things wrong, love them to death. I'm sure I'm doing plenty of things wrong as much as we're trying to do right. Same for you, right? But if we could get this right, they emulate, they replicate what we do for them, the good, the bad, all the things in between. So this is one of those things that if you get this right with them, they will pass it on to the next generation. And the ripple effect can just completely change the trajectory of your family's lineage. And it's really, really amazing stuff. So those are the five reasons that I think every kid should have a whole life insurance policy. And it does not take much. You as the parent, we're talking 150 to 200 bucks a month. You can get a kid started and can get a lot of results, probably way better than you think. So if you want to learn about this, have any questions, go down to the link in the description below, set up a clarity call, have a conversation with somebody on the team if you haven't already. And that's it. Have a blessed, inspirational day. Hopefully you found value in this and we'll talk soon.