Life Insurance with Long-Term Care for an 18 year-old?

Yes, a college freshman has just applied for a life insurance policy with a Long-Term Care rider, a second rider to ensure continued premium payments in the case of total disability (thereby ensuring cash growth) and another rider to provide additional insurance later, if desired.

More accurately, a parent is purchasing the policy for the freshman.  Why?

The conventional, or “normal” approach to financial well-being isn’t as robust as was the case in the past.

This is not just any policy… it is a Whole Life policy; a specially designed whole life policy, from a Mutual life insurance company.  It will provide savings (and growth) for retirement, a home down-payment, auto purchase, and much more as well as tax benefits.

It can and will work in conjunction with, or as an alternative to, the 401(k) that many others will use.  As a savings/growth vehicle, it is consistent, and competitive.  It will perform in a financial portfolio very efficiently.

And, yes, it will help to protect the freshman’s possible family in the future. 

The annual premium for an 18 year old is very low, as you might imagine. By the time the freshman reaches retirement age, that will be a very healthy and robust policy, and will prove quite useful along the way.

It’s now “normal” for people to purchase life insurance only to protect the family. 

It’s now “normal” to save for retirement through a 401(k) or IRA.

It’s now “normal” for people to start thinking about LTC when in their 50’s or 60’s. 

It’s now “normal” to ignore, or even disparage the use of Whole Life insurance due to myths and lack of insight. 

We’re not concerned about what is now “normal”.  In light of the economic environment since 2000, we believe in a “new normal”; one that has been used and proven successful for over 100 years!

Purchasing Whole Life from a “Mutual” insurance company gives the policy owner participation in the business model of the company; that is, an established, conservative, regulated, and relatively consistent business…with little-to-no stock market exposure.  Imagine participating in a solid company, growing your assets, at a good rate, without fear of the volatility of the stock market!

Accessing the cash in the policy is as easy as a phone call or letter, at any time in the owner’s life.  Imagine guaranteed cash growth, at a minimum, with tax benefits!

Should parents, grandparents, and even young adults consider this approach?  We think so. 

And, we do not use any form of Universal Life insurance.  None.  An explanation:

About L N Himel

Site creator and author has well over 30 years experience in the world of Finance at both the institutional and personal levels. As is often true, his successes, but also the pain of the author's mistakes, have resulted in insights that you, the reader, might find helpful in your efforts to avoid pitfalls and poor results. Associated with Himel Financial Services, at
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