can grown children cash out policy.
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Purchased for child now In 30’s. Can they take over with no increase or cash it out.
Asked February 4, 2019
You purchased life insurance for your child at a younger age. Now you are worried that their premiums might increase now that they are older. I have three suggestions for you.
1) Does the child consent to the policy being placed in their name? You made that choice for them when they were younger. Now that they are older they can choose for themselves. You should talk to them first before you do anything. Did they agree to keep the policy going in their name? Did they tell you no? You need to consult with your insurance company about your options. They might be able to withdraw the money in there, but there may be some consequences to that.
That is something you need to speak with your insurance company about. Make sure you do it with your child present. In fact, your child should be the one posing some of these questions since it concerns them.
2) The payment plan could be another issue they will have to deal with. The policy stays at a fixed rate when they are younger. The rates tend to increase once the child reaches age 18 or older. Your child might have to pay more into the policy once it is in their name.
3) One other option you could consider is something called permanent life insurance. It cannot change no matter how old your child is. There is a rate that is agreed upon and the discussion is over.
Did you get one of those policies for your child? You may want to consider switching over to make your life easier. Once more, you should not be making these decisions without your child there. It is their policy. Your insurance company will want to talk to them.
Answered February 8, 2019 by nicka