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Pethel Insurance Group

2622 Dale Earnhardt Blvd
Kannapolis, NC 28083

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Pethel Insurance Group Blog

Life Insurance for Your Kids

We believe life insurance is appropriate for every child at the Pethel Insurance Group, serving Kannapolis, NC, and all of Cabarrus and Rowan counties. There is no more horrible experience for any parent than losing a child. Making sure you have enough life insurance can cover final expenses and give you the resources for taking some time off to mourn the loss of your child. And even if you raise your child to a happy and healthy adulthood, as most of our customers do, insuring your kids has some other advantages.

Buying Life Insurance Now Locks In Rates

When a child turns 21, the ownership of their life insurance policy transfers from the parents to the child. Coverage that starts when the insured is a child generally continues at the same monthly, quarterly, or annual rates when they are adults. These rates are locked in even if they develop medical conditions that make them hard to insure.

Whole Life Insurance Grows in Value

Buying a whole life policy for your child gives them a source of ready cash they can access through loans later on. Your child’s credit rating doesn’t limit these loans. 

Depending on the policy you choose, whole life can insure your child’s life until they turn 65 or even 100. There are whole-life policies that are paid in full after a stated number of years, available to be cashed out or paid on death, as needed.

High-Income Parents Can Use Whole Life to Transfer Money to Their Children Tax-Free

At Pethel Insurance Group, we can advise high-income parents on how to use whole life insurance to transfer wealth to their children while legally avoiding North Carolina and federal gift and income taxes. For wealthy families, this is a powerful incentive to maximize their investments in life insurance for their children.

Pethel Insurance Group is convenient to families in and around Kannapolis, NC. Call us to make an appointment to discuss all of your life insurance needs.