Customer wish to make a gift to a grandchild

A customer wanted to invest a lump sum, to provide $1 million to a grandchild at age 25.

I suggested the following solution:

- take an investment-linked policy in the payor's name
- endorse the policy to be transferred to the grandchild at age 25

I recommend to invest $250,000 in our combined fund. If it earns 6% per annum (not guaranteed) for 24 years, it will accumulate to more than $1 million.

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For other customers, you can leave a more modest sum for your grandchild. If you invest $10,000, it can grow to $40,000 in 24 years time, assuming an average yield of 6% (not guaranteed).