Newborn Must-Do: Secure Their Financial Future From The Beginning

The following content is sponsored by TruePath and A Girl’s Guide To Cars. All opinions are my own.

Having a baby is such a happy time in every mom’s life. Just looking into your baby’s eyes is enough to want to give them the world. The very milestone itself is enough to be a conversation starter for most couples about the future. Making plans to help secure your child’s financial future is a smart decision, but it doesn’t have to be difficult to do.

There are so many benefits that come along with planting the seed to their financial security. When my oldest was born, we were so overwhelmed about the newborn stage that we didn’t have the insight to look beyond the moment.

With our most recent family addition, my youngest son, we’re making smarter decisions that can have a big impact on his life – and all of my children.

Now that I’m an adult and having intimate financial discussions with my own mom, I’m learning about her biggest regrets. She’s deeply regretful that she didn’t proceed with more caution about the future and plan ahead. As we get older and we make these realizations about our planning loopholes, it can be even harder to make up for them.

This has led to us acting now instead of later. The no-brainer investment we’re making is creating an opportunity fund. With the assistance and concierge services of TruePath Financial, we’re able to start a Gift Of Life fund.

Benefits Of Setting Up A Gift Of Life Opportunity Fund

I’ll be the first to admit that I’m easily intimidated when talking about finances. I know how important it is and, as a mother, I want nothing more than financial security for all of my children. 

TruePath makes it easy to understand the investment that you’re making and the benefits that go along with it. They’ll walk you through each step of the process.

How You’re Gifting Money To Your Child’s Future

Setting up a Gift Of Life fund allows your child to have the cash-value to purchase a home, pay for school or buy a car. The money comes out tax-free, and can be taken out as a loan or withdrawal.  And when you pay it back, the money grows as if you never took the cash out at all. Therefore, becoming your own bank.

Ways Your Child Might Use The Monetary Assistance

When I think about how my children might use the income one day, I immediately think of the need to purchase a car. Even though we all know the day will come, this milestone has a way of hitting parents unexpectedly.

Marriage is being put off by younger generations until later and college expenses are being covered with FAFSA applications, scholarships and grants. However, buying a car gets lost in the shuffle.

It’s a stretch for any parent’s budget and then there’s everything else that comes along with it. The car maintenance, insurance and fuel can come out of your pocket too.

Funding a cash value life insurance policy, through the Gift Of Life, can be the pathway to your children’s vehicles without the stress of it popping up later on. 

How To Withdraw On A Cash Value Life Insurance Policy

A cash value insurance policy covers you in the event of death or you become sick, injured, severely ill or disabled, and that as you pay for it, it accrues value. It’s very similar to a savings or investment account. 

As the cash grows you can withdraw it, borrow from it or, you can continue to let it grow until you need it. Permanent, or cash-value life insurance is different from term insurance as it accumulates cash, the cash grows tax-free, distribution as a loan or withdrawal is tax-free and the policy lasts until you pass away. 

At National Life Group, both the term and permanent policies provide access to the death benefit if you become sick, ill, injured or disabled.  Term insurance is the most affordable and the policies provide the opportunity to convert some, part or all of the death benefit into a permanent policy, but can be done step-by-step, depending on one’s budget.

A 529 Plan is great because you can use it to pay for qualified education expenses, but you can’t use it for a car.

The Gift of Life plan is designed for families like us, with young children. It allows parents, or grandparents, to make regular contributions throughout the child’s life so that when they mature— high school, college age or older— they’ll have the financial backing they need for whatever big purchase they want to make.

An Example Of Using The Gift Of Life

True Path, like other financial plans, doesn’t make guarantees about returns but they do guarantee the basics: your account will never dip below your investment, unlike stock accounts or many other higher growth programs.

Check out this example of how the True Path Gift of Life plan can grow: 

Female, 5-years-old

• Premium of $100/month, with increasing death benefit (allows you to put more money in the policy)
• At age 24, $24k was put into the policy and the estimated value is $37k
• At age 34, $36k was put in the policy and the estimated value is $80k
• At age 69, $78k was put in the policy and the estimated value is $740k

Taking The Big Step And Getting Started

Making the leap to secure your child’s financial future can bring up tough conversations, like death. 

The True Path Gift of Life plan covers your child in pretty much any instance: you can access the entire death benefit if your child dies or becomes sick, ill, injured or disabled; it also locks in a health rating for life insurance so even if they develop a condition later in life they are still insurable. And it gives them something to fall back on if your own planning comes up short.

With the uncertainties that the future can bring, wouldn’t you feel better knowing that you’ve provided your children something to fall back on? When we were new parents, we didn’t know better, but now we’re pushing towards a better tomorrow for our children’s futures. 

To find out more planning information, use this link and use the code TRUEPATHGGTC for custom help to design your own plan.