Child Asset Builder
Remember, compound interest is the addition of interest to the principal sum of a deposit. In other words, interest on top of interest. As the years go by, this method of accruement can develop into a sizable amount of money. This is great, but the problem is that interest is always taxable when you take a distribution.
Every time I tell the Child Asset Builder story, I get more and more excited. The concept isn’t new, but with today’s products, it can be highly enhanced. Today, our program can include life insurance with critical, chronic, and terminal illness coverage. The owner can even use the money as needed as the child reaches maturity.
But why would you purchase life insurance? The number one factor is future insurability. Once you’re approved, it’s locked in as long as your policy doesn’t lapse. Think about that for a second. Being able to purchase life insurance at a young age, when costs are low, makes perfect sense. No matter what happens in life, your child is insured.
Later in life, that insurance can be a great asset, as you know, to help secure loans. There is so much flexibility in this plan. It may also become the most valuable asset a family can ever have, helping a family pay debts and ensuring future income. This Child Asset Builder plan could become a college savings account. In addition, the policy comes with critical, chronic, and even terminal illness riders. I call this the risk management of our plan.