Let’s create a real legacy

Have you ever wondered how to create a legacy? I know there are those who are ultrarich who donate millions of dollars to hospitals and foundations, and get a research buildings named after them. But really, for those of us who have worked all our lives to scratch out a living and are now retired, how could we possibly think of creating such a legacy?

Wouldn’t it be a wonderful thing to have your grandchildren have something of real value from you that they will still have long after you have passed away? Of course, you can give them personal mementoes, photographs or antiques — but what about real monetary protection and the ability to fund large future purchases like education or their own retirement?

I’m talking about participating whole life insurance for children. Before you dismiss the idea, why not consider purchasing a policy for a grandchild? The premiums are more affordable for permanent insurance at children’s rates and the policy can be paid up in most cases by 10 or 20 years.

Participating life policies vary by provider and by province, so it’s best to talk to a licensed adviser for guidance. The policies offer insurance protection with the potential to grow money tax-free inside the policy over time, called a CSV or “cash surrender value.” The premium is guaranteed for life at the time you purchase the policy. For some plans, the participant may even be eligible to receive dividends that can be used to pay the premiums or be added to the CSV balance, creating more growth.

Cash can be accessed to fund things like education, used as future collateral to borrow against, or simply left to grow over many years and used for family protection.

Bottom line, what we want when we create a legacy is to be remembered, valued and thought of in a loving way.

When your grandchild is 50 and you are long gone, it would be nice for them to say to their banker or adviser, “I got this from my grandma!”