Wedding Gifts Have Changed Over the Years
In the 1970s, the average age of couples tying the knot was 23 for women and 25 for men. By 2008, those numbers trended upwards to 29 for women and 31 for men. As anyone in their early 20s can tell you, you don’t have a lot of household possessions at 23-25 years of age. Postsecondary schooling and getting on one’s feet as an independent adult take precedence over the turkey roaster and full set of matching linens. This is why gift registries, kitchenware, and practical household items were the go-to for wedding gifts for many years.
These days couples are not only forming long-term partnerships later in life, they are joining two fully stocked households together. This results in pleas for “no wedding gifts” as the couple is already shedding doubles of dishes, bookshelves, and quilts.
So, if you are searching for the perfect wedding gift for your son or daughter, what can you do?
Have you considered life insurance?
Wait, what? This is an article about life insurance?
Yup. Life insurance. It’s an unusual wedding gift, but it really is the gift the keeps on giving.
The thing about life insurance is, everyone knows they need it, but when you are in your 20s, it’s just one more expense on top of rent and student loans. When you are in your 30s and the need becomes very apparent for it (to protect a family or mortgage, for example) you could already be stretched with a new home or prepping a nursery. Having a life insurance policy already in place would be a welcome relief.
How can I gift life insurance? I don’t want to pay premiums forever!
As a parent, you can buy life insurance for your child and assign it over to them after a certain number of years. For example, you could purchase the policy with the understanding that the couple will take it over in five or 10 years. At that time, they could continue the policy, or they can surrender it or even let it lapse.
The benefit, however, is financial. The younger and healthier you are, the better rate. Let’s say you bought your healthy, active, 30-year old a son a T-30 policy and put his wife as the beneficiary. Now that family is covered for 30 years. In 10 years, the couple takes over the policy (and of course, you’ve got all the goodies in there like a critical illness rider, allowances to increase the coverage without a medical, which is very handy when it comes time to insure a mortgage, etc.) Since life insurance premiums go up with age, you are sparing the family from buying a more expensive policy. You’ve locked in their rate! If they are just buying a home or starting a family, the value of this gift is even more appreciated.
Let’s say your son developed a medical condition within those two years that would have skyrocketed his rate if he had to buy a policy at 40. Again, your unusual wedding gift would save the day.
How can I learn more?
There are so many different ways a life insurance policy can be structured, and many ways to customize it to your needs. Contact a life insurance broker who has access to all the carriers in Canada, so you can get a customized solution and the perfect wedding gift for your son or daughter.
That is an unusual wedding gift!
Life insurance is truly an unusual wedding gift, but it is a very practical one that works well for today’s modern brides and grooms. To learn more about the many different and affordable ways you can leverage life and health insurance, contact me today.