The Hidden Benefits of My Life Insurance Policy

Many teenagers and young adults live in the moment and do not see the value in purchasing life insurance early on. I was one of these teenagers. My parents bought me a life insurance policy when I was 16 and now, many years later, I realize that what they truly gave me was security and financial stability.

My parents, both patient and generous, chose a twenty-year life insurance policy that would pay our dividends after thirty years. They explained to me that they would cover the premiums until I finished school. However, it became very easy for my young mind to forget the policy existed amidst the homework and studying.

Upon the completion of my degree and the beginning of my career, my mother shifted the responsibility for the life insurance premiums to me. I was surprised at how reasonable the premiums were, and learned it was because the policy was taken out so early in my life. I dutifully paid each time I received a biannual notice, but the policy slipped to the back of mind in the months between.

At the age of 36, I was informed that my insurance premiums were paid in full and that, if desired, I could start collecting dividends on a monthly basis when I turned 46, or I could chose to let them accumulate. I was busy raising a family and working full time and, once again, my busy mind overlooked the policy.

Today, as I look into my retirement planning options, I discovered that I can draw out a monthly income to supplement my retirement finances. Like a history class in school—one you study for, pass, and soon forget—my life insurance policy was rarely at the forefront of my mind. But now, seeing how much life insurance will help me, I know that my parents gave me a valuable gift—one I wish I had the foresight to share with my own children. I hope I’ve inspired you to offer it to yours.