A Gift I Never Knew I Wanted

What 21 year-old would want “The Gift of Life Insurance” from his grandparents? I knew my Grandpa, Harry Cox had been in the life insurance business, as were his two sons Brad and Geoff. But seriously, Grandma and Grandpa couldn’t come up with a better University Graduation gift than a life insurance policy?

It was a sunny day near the start of spring 2012. My Dad and I (Geoff) had just pulled into the driveway on our way back from hockey. We both got out of the car and headed to the tailgate to unload our hockey bags. We were in the middle of a deep conversation about my career and life plans and what I wanted to do post-graduation. We had had many of these conversations before but I only knew one thing for certain at this point and it was made clear to me by Mom and Dad. If I wanted to continue to live at home I would have to pay rent. In my mind I was thinking that if I was going to be paying rent at home I may as well move out and pay rent somewhere else where I could have unlimited freedom and begin on my own journey through life.

After discussions about where I would move to, who I would live with etc. “The Gift of Life Insurance” conversation began. Dad explained to me that my Mom and he, Grandpa and Grandma (Harry and Mildred) had been contributing to a life insurance policy on my behalf since I was born. Being 21, I still didn’t understand what this meant or why I would even need life insurance. More importantly, how this would help me today.

In short what I learned and what it meant was the day I turned 21 I had a life insurance policy with a substantial death benefit and cash value associated with it. Dad explained to me that I could cash in the policy and walk away with a cheque or bring the policy to the bank, leverage the cash value and have a line of credit I’d owe to myself while keeping my death benefit in place.

I chose to leverage the cash value in my policy with the bank and use the line of credit as a down payment towards my first house.

Without “The Gift of Life Insurance” I would likely still be paying rent to someone else, while trying to save up enough money to purchase my first home. Instead I am rewarded with the blessing of paying rent to myself which is going towards paying back by line of credit and mortgage.

The first thing I used my life insurance for was to purchase my house. As I’ve come realize this is a gift that keeps on giving and has endless opportunities. My Grandpa, Harry passed away this past year but I’ll always remember him and my Grandma each time I use my life insurance policy. I recently became engaged this past year and was able to utilize the equity I had built up in my line of credit to help with the purchase of the ring.

It’s such a special unique gift because it can be used in a variety of ways and every time I use it I will think of my Grandpa and Grandma, Mom and Dad.

Thanks again Grandpa, always thinking of you.