The purchase of whole life insurance for a baby girl or baby boy is a great gift idea. The younger the child is, the lower the premiums will be because you can "lock in"those baby age rates. Purchasing whole life insurance while your offspring are very young will give the policies more of a chance to grow in cash value. In addition, the policies may be used as an investment option that will become a significant gift for your child or children’s future. The policy grows tax deferred.
A Good InvestmentMoreover, by using a whole life policy as an investment, your newborn will have a savings that will grow in cash value. As an added benefit, buying whole life insurance can be used as a method to teach a young adult financial responsibility, and it teaches a great lesson about tax-deferred savings. The policy can be used to pay for future premiums, the child’s education, and other family needs. Of course, all of this will be due to your incredible gift, thus allowing your children to have this added advantage in their lives. In fact, a whole life insurance policy is a gift that can never be topped because you will be protecting your children from experiencing a typical financial burden. When your children become adults, they will be grateful for your thoughtfulness and will be mature enough to understand the extent of your love.
According to Winston Churchill, "Saving is a very fine thing, especially when done by your parents."