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Create a Legacy

Life insurance can cover more than your life

Help your grandchildren get a strong start

The main reason for buying life insurance is to provide a death benefit for your loved ones. But it can also help supplement the cost of your grandchildren’s education.

Life insurance could be the ultimate gift to your children and grandchildren. Life insurance can provide the reassurance that your loved ones will be protected, should the unexpected occur. And it can benefit your loved ones in other ways, too.

Here’s an example:

Let’s suppose that you gift premiums to your son or daughter so they can purchase a life insurance policy on their life, and name their children as beneficiaries. In the event of the insured’s death, your grandchildren will receive the death benefit which can be used to help fund their college education.

In addition to the death benefit, as the premium is paid, the policy’s cash value has the potential to accumulate tax deferred. The available cash value can be accessed through loans for any purpose.1 It could even help cover the cost of your grandchildren’s education.

Advantages for you – and for them

Using life insurance to help fund a grandchild’s college education offers many advantages.

There are no complex eligibility requirements, no qualified education costs, and no income limits to consider. Plus, a policy loan generally won’t affect your grandchild’s eligibility for other financial aid. Keep in mind, most life insurance policies require health underwriting, and in some cases, financial underwriting.

It may be an effective way to get the reassurance of a death benefit – while also helping provide for a college education. And it’s just one of the many ways life insurance can help you create a legacy.

Discover how life insurance can help you create a legacy. Ask your financial professional today.

1 Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and you should consult a tax professional.

In this hypothetical example, the grandchildren would usually be minors. Minors don’t usually have the capability nor the legal rights to deal with the policy death benefits. To resolve this problem, a trust could be established by the grandparents or by the parents for the benefit of the grandchildren and the trust could be named as the policy death benefit beneficiary.

For information on how life insurance works, including fees and expenses, please contact your financial professional.

True to our promises … so you can be true to yours.®

A leading provider of annuities and life insurance, Allianz Life Insurance Company of North America (Allianz) bases each decision on a philosophy of being true: True to our strength as an important part of a leading global financial organization. True to our passion for making wise investment decisions. And true to the people we serve, each and every day.

Through a line of innovative products and a network of trusted financial professionals, and with over 2.6 million contracts issued, Allianz helps people as they seek to achieve their financial and retirement goals. Founded in 1896, Allianz is proud to play a vital role in the success of our global parent, Allianz SE, one of the world’s largest financial services companies.

While we pride ourselves on our financial strength, we’re made of much more than our balance sheet. We believe in making a difference with our clients by being true to our commitments and keeping our promises. People rely on Allianz today and count on us for tomorrow – when they need us most.

Guarantees are backed solely by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

Product and feature availability may vary by state.
Products are issued by:
Allianz Life Insurance Company
of North America
PO Box 59060
Minneapolis, MN 55459-0060
(800) 950-1962