How the Million Dollar Baby Plan Works. Setting Up Your Kids for the Rest of Their Life
You’ve achieved some success in your life. Now you want to build a legacy, preparing your child for the rest of their life. Like you, they will face certain milestones where it pays to have ready access to money – and with the Million Dollar Baby Plan, you can make sure they’re ready to face the future.
What is the Million Dollar Baby Plan?
It’s a plan that uses an insurance policy as an asset for your child. Not only will they have money ready to pay for what they need – they will also have excellent insurance coverage, to make sure they’re protected.
What can I use the Million Dollar Baby plan to pay for?
That’s up to you. However, by paying premiums into a whole life insurance plan, you can ensure they have money to pay tuition by the time they are university age; put down a sizeable down payment in their 30s and a substantial amount of savings available to them when they’re ready to retire. Plus, your kids will have a good amount of permanent, guaranteed life insurance at the lowest rates possible (their youngest age).
Your kid will have a large amount of insurance and will have money ready for major milestones (eg. when they are ready to go to school and when they are ready to buy a house and when they are ready to retire.)
How does it compare to other kinds of long term legacy plans?
Just comparing it to an Education Savings Plan, for instance, you see that the total value of an ESP will ultimately go down to zero as the student draws out those funds. There would be nothing left to use later. In contrast, with the Million Dollar Baby Plan, you will have money available to you at later milestones.
How early should parents contribute?
The earlier, the better. You can get insurance for a child starting at 2 weeks old. The earlier you set this up, the longer you can take advatage of the power of compound interest.
How much are the monthly payments for the Million Dollar Baby plan?
You can set this up for any amount, but we suggest a minimum of $100 monthly and recommend $200-$250 monthly depending on your childès age.
Why haven’t I heard of the Million Dollar Baby plan before?
We’re not unique in using whole life insurance for kids; people have been doing this for a very long time (they just never called it a Million Dollar Baby plan). The majority of people you know don’t do this because they typically run their finances through banks – and banks don’t offer this.
The Million Dollar Baby Plan is a no-brainer strategy to set up your child for life. If you’re interested in seeing how this can work for you, contact us today.