Ha! You laugh when they open their presents and find ugly sweaters. Have you ever thought about giving the gift of life insurance, though?

It pays bills and wipes out debt when your loved ones need it the most. Plus, your kids or grandkids can use a cash value policy for college expenses or their first home.

Show them how much you care. Ring in the new year with the magical gift of life insurance. We’ll show you three ways to use this amazing present.

Option 1: Name a Charity as a Beneficiary

Here are two easy options for creating a charitable gift with life insurance:

1. Help a charity purchase a policy on your life, with the charity named as owner and beneficiary.
2. Purchase the policy and name the charity as the beneficiary.

Why would you do this?

For starters, it lets you help a cause you’re passionate about. Plus, you could reduce your taxable estate after you pass away.

Everyone wins!

Option 2: Buy a Life Insurance Policy for Your Children or Grandchildren

Feel free to give gag gifts and life insurance. There’s no rule against mixing silly and serious presents!

Plus, most policies for children are whole life.

This means the child can:

• Borrow from the cash value of the policy
• Qualify for more life insurance later on

Loans give you another reason to think about life insurance for kids or grandkids.

Most federal student loans are forgiven when someone passes away, but most private loans are not. Young buyers usually need cosigners for big items because they haven’t established their credit.

The cosigner is responsible for the remaining balance of a private loan when the borrower dies.

Option 3: Buy a Life Insurance Policy for Yourself

Here’s how life insurance works when you buy a policy for yourself:

• You pay the life insurance company for coverage.
• You name a beneficiary or a few beneficiaries.
• The beneficiaries receive a payment after you die. This payment is known as a benefit.

Do you know how much life insurance you need? We'll help you figure out that amount.

First, think about what you need to pay for now and in the future:

• Mortgages
• Car payments
• Living expenses
• College loan payments
• Funeral expenses

How much would it cost to cover these things?

While you’re at it, think about how much money you want to leave for your children or grandchildren. Sit down with them and have a conversation about their finances (if they’re old enough to worry about them).

Combine your financial responsibilities with how much you want to leave behind. That should give you a ballpark figure for your policy amount.

You also have the option of adding more coverages to your life insurance, such as:

• Long-term care, which helps pay for assisted living facilities, nursing home stays, and home health aides. 
  
  
• An accidental death benefit, which provides additional payment for deaths caused by accidents.
  
  
• Disability income to replace some of your income when an illness or injury prevents you from working.
  
  
• Identity theft coverage to help stop fraudulent bills and charges. Identity theft coverage is included free of charge for all Pekin Life Insurance Company policyholders!

What’s the Difference Between Term Life and Whole Life?

It’s like the difference between renting (term) and making a monthly payment to own (whole). There’s more to it than that, though.

With term life, you have insurance for a set period of time like 10 years.  

Term Life Advantages

• Less expensive than whole life
• Payments guaranteed for the term you signed up for
• Can be converted to whole life
  

Term Life Disadvantages

• Lasts for a limited amount of time unless you convert it to a different kind of policy
• Might not work for you if you plan to cover lifelong needs

Whole Life Advantages

• Builds tax-deferred cash value
• Provides lifelong coverage
• Premiums don’t increase
• Offers the option of borrowing from the cash value of the policy
• Doesn’t change with market fluctuation

 Whole Life Disadvantages

• More expensive than term life
  

Do you want more life insurance answers? Your local, licensed Pekin Insurance agent will tell you more about what this coverage can do for you!