I have worked in the life insurance field for 44 years.
I purchased 2 policies each (several years apart) on each of my 2 children for the purposes of (1) providing for cash, if needed, for their funerals, etc. (2) protecting their insurability, so they would have some insurance, even if their health deteriorated at a young age and (3) growing cash values, which might be used for a variety of uses (including to help fund my retirement, potentially).
The premiums on the oldest policies have been fully paid by policy dividends for maybe 10 years or more now, and the newer policies are almost to that point. The guaranteed cash values grow at guaranteed 4%, inside the policies (not taxable year to year).
If it seems I don’t need the values after I retire, I will transfer the ownership to the kids, and they can put their own spouses and/or children as beneficiaries. If either of them dies before I make that decision, I will share the death benefits with their spouses and/or children.
smart
good response. as a life agent, it seems the OP’s question is whether he can insure his interest in his kids managing his income producing properties, which duty they perform in anticipation of inheriting the properties.
So if they die, he will have to sell the properties or hire a manager. There may be a loss on sale or a reduced value when the properties are converted from an income stream to a lump sum. There would be costs for hiring a manager.
Are these insurable interests? Basically, the OP has a contract with his kids to manage property for future compensation ( inheritance ).
Thank you for making so much sense, clear and concise.