Life insurance is a topic that many people think is only for senior citizens, but young people should be looking into life insurance at a young age. If you have children, you should definitely look into getting a life insurance policy. This will protect your child and keep them financially secure in case you are no longer there for them.
Can children be the beneficiary of life insurance? The answer is a little complicated. Minors are not always allowed to receive life insurance benefits directly to their checking account. They often will need to receive the money in other unconventional ways.
We’ll talk about the reasons parents should think about getting life insurance, the ways you can get them the money if they are minors, and the ways you can save money on life insurance policies.
#1 – We Often Make Risky Health Choices
Parents often don’t think they need life insurance because it’s hard to imagine bad things ever happening. Until tragedy strikes, it feels unimaginable. The reality is that a bad accident can happen to anyone, and health issues can occur that will lead to early death if you don’t evaluate your lifestyle choices.
Make sure you eat well and exercise to stay as healthy as possible. Don’t go out of your way to abuse your health. Smoking, drinking, and doing drugs are surefire ways to take years off your life and dissuade a life insurance company from giving you a policy. Ironically, these are the people who need life insurance the most.
To avoid the risk of having to cash out a life insurance policy, continually look at the choices you make each day that can affect your health. Push yourself to be healthy as a way to protect your children, even when you find it hard to be motivated.
You should also look to move somewhere that keeps your family safe. This means choosing a city with a low crime rate, and perhaps somewhere that has a limited number of natural disasters.
Living where there are a lot of hurricanes, tornadoes, or wildfires could lead to your home being destroyed or, even worse, you dying and leaving your kids alone. Weatherproofing your home can help keep it safe.
#2 – The Appointed Guardian Will Need Life Insurance
Because a minor can’t cash a life insurance policy, it would be smart for you to choose a legal guardian who will receive the life insurance in your name. This should be a person you trust who will take over the responsibilities of raising your children if you are no longer alive to do so.
Just because someone is good with your kids doesn’t mean they are good with money. Choose a legal guardian for your kids only if they are good with both money and caretaking.
You will need to leave a will that says what the money is supposed to be used for if your kids are unable to use it on their own account right away.
If you have an older child that is already over 18, you may consider naming them the legal guardian of the rest of their siblings, and they can use the life insurance policy to take care of your family. This is a large responsibility for your oldest child, but at least you know the money is being put in the hands of someone who knows your family best.
#3 – You Want Your Child to Succeed No Matter What
Young parents may not want to rush the upbringing of their child, but the future is very important to plan for. Getting life insurance as a young person with a newborn will make sure your baby will grow up with the financial resources available to go to college or pursue a career that takes formal training.
Life insurance can help pay for these vital items like college or career training if you aren’t there. Getting life insurance is about taking care of your child and giving them the opportunity to succeed no matter what happens to you or your partner. It’s not about being morbid and planning for the worst. Preparing for emergencies is never fun, but you won’t have to worry about your kids needing to use your life insurance policy if you do everything possible to stay alive and remain healthy. Eating and exercising according to your doctor’s directions is a good start to having good health and getting an affordable life insurance policy.
Shawn Laib writes and researches for the life insurance comparison site, QuickQuote.com. He wants to help people prepare their families for emergencies with life insurance.
Last Updated on October 28, 2023 by admin