Give the Gift of Giving: A Smarter Way for Grandparents to Support Their Grandkids’ Future

Grandparents love to give. Many want their gifts to mean something long after the holidays or birthdays pass. Instead of another toy or check, more grandparents are looking for financial gifts that grow, protect, and support their grandchildren throughout life.

At Watermark, we often work with families who want to create gifts that last. One of the most effective strategies we recommend? Using a permanent life insurance policy as a flexible, long-term financial tool.

A Real Example

A grandparent recently came to Watermark with four main goals:

• Support future milestones (college, first home, business).

• Avoid handing over money too early.

• Find an alternative to the limitations of 529 plans.

• Maintain control while giving a gift that grows.

Our team recommended a whole life or indexed universal life (IUL) policy set up with:

• The grandchild as the insured

• The grandparent as the owner and beneficiary

This structure created a thoughtful, strategic financial gift designed to grow with the child.

Why This Strategy Works

✔ Builds Tax-Advantaged Cash Value
The policy grows tax-deferred—and money can be accessed tax-free later for any purpose. No penalties. No restrictions.

✔ Full Ownership + Control
The grandparent decides how and when funds are used.

✔ Real-Life Flexibility
Cash value can support college, a first home, a wedding, business startup, or unexpected expenses.

✔ A Lifelong Asset
The policy stays in force throughout the grandchild’s life, long after the gift is first given.

A Gift That Truly Lasts

At Watermark Life Insurance, we help grandparents build financial gifts that matter - gifts that are flexible, tax-efficient, and designed to support their family for decades.

Permanent life insurance isn’t just a policy. It’s a legacy. It’s support when they need it most. It’s the gift of giving, with impact that lasts a lifetime.