It's the principal of the thing......

@celticeagle (117268)
Boise, Idaho
April 23, 2011 4:12am CST
and I just wonder what stance my Mylot friends might take on this. Okay, so say there's this family and the grandmother upon the birth of the first grandchildren issues a life insurance policy in its name as a gift. She pays on it until her death when the parent takes over paying it. Then when the child is of age the parent tells them 'oh by the way, you have this life insurance policy and you are of age now so you can continue to pay on it'. Hmmm! To me that isn't a gift any longer. What do you think?
2 people like this
8 responses
@JenInTN (27565)
• United States
23 Apr 11
No..not much of a gift..unless....it can be cashed out after a certain time and the time has passed. Some of those policies can be cashed in early. You get a certain amount of the premiums back...kind of like insurance on life until you reach a certain age plus a savings account on top. I would check in on that one.
2 people like this
• Canada
23 Apr 11
Forgot mention, Jen...the rain has to STOP before a rainbow appears...AND I think today, will be the day, here! I am growing "webs" between my toes!! HAPPY EASTER!
@celticeagle (117268)
• Boise, Idaho
23 Apr 11
HAPPY EASTER! Ya, Jen the policy can be cashed in but if you continue to pay on it the value builds.
1 person likes this
@Hatley (164736)
• Garden Grove, California
25 Apr 11
hi no I cannot see it as a gift if the adult child is just handed that and told now you take over paying it. what if the child is just starting in college and has not got the money to make those payments or is in his or her first job and is not making much money.some gift if you are stuck with the payments.Its a great idea only if the youngster can afford the payments. lol lol
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@celticeagle (117268)
• Boise, Idaho
25 Apr 11
You said toots!
@sender621 (14956)
• United States
23 Apr 11
Often principal i more important that onject at hand. Feeling about ituation and idea can be more benefit yjn hat anything i orth.
@celticeagle (117268)
• Boise, Idaho
23 Apr 11
THis is true. Thanks for the response.
1 person likes this
23 Apr 11
I think your right its no longer a gift but its an obligation. I believe that life insurances has a plan type that is payable for 5 to 10 years so how did it happen that paying such insurance took them so long and passing it on to the grandchild is that a multimillion dollar life insurance?
2 people like this
@celticeagle (117268)
• Boise, Idaho
23 Apr 11
It was through the organization she was affiliated with at the time. She paid on it until the child was of age and then you could continue to pay on it and add more to the plan that way if you wished to and that is what the parent was doing.
1 person likes this
@GardenGerty (96763)
• Marion, Kansas
28 Apr 11
Many insurance policies require that they be handed over either at 18 or 21. My policies on my children were that way. It is then their privilege to add to it, or to continue as it is or to see if they can get cash value or use it as a collateral for a loan. In that way it is a gift.
@celticeagle (117268)
• Boise, Idaho
28 Apr 11
This was too.
1 person likes this
@GardenGerty (96763)
• Marion, Kansas
28 Apr 11
I think I continued making the (very small ) payments until my kids married.
@writersedge (22579)
• United States
25 Apr 11
I think it should have been term life and been all paid up by the person was 18. Mine was all paid up by the time I was 18.
1 person likes this
@celticeagle (117268)
• Boise, Idaho
25 Apr 11
Right on!
@Lakota12 (42684)
• United States
24 Apr 11
No I wouldnt think so either as matter of fact wonder if they could cash it in now!
1 person likes this
@celticeagle (117268)
• Boise, Idaho
24 Apr 11
I am sure they can.
@pergammano (7755)
• Canada
23 Apr 11
Good morning, celticeagle...I will respond with my "gut" or first thought, which may not "hold any water"....BUT, I think it is like any other GIFT, you can choose to accept it or NOT! Hopefully the child is able to meet the financial obligation...and use it as "a life-learning tool,"----in such as the way of the world, many good and common goals (like owning a house) are met with fulfilling financial obligations...and in this case, there truly is a "pot of gold" at the end of the rainbow...a cash settlement when maturity of the policy is met! For me, I think it would be a good incentive!
@JenInTN (27565)
• United States
23 Apr 11
Did I hear something about a rainbow? I am chasing them today and I was thinking I might have heard there was one here.
• Canada
23 Apr 11
Dang...Jen..you don't miss a thing, do ya? Rainbow girl! Sure wish there was a rainbow in the myLot code!
1 person likes this
@celticeagle (117268)
• Boise, Idaho
23 Apr 11
@pergammano I think that is sound advice, thanks. @JenInTn Youre chasing rainbows today, huh? Hope you find many.
1 person likes this