My husband and I married last year. This is a second marriage for each of us. I have two adult age children and he has two minor children. In his divorce decree it states that he shall maintain a $300,000 life insurance for his children as beneficiary until they reach the age of 23. However, on the actual policy he only has me listed as beneficiary. There is nothing indicating that this is left for his children should he pass prior to them reaching age 23. What would the legal liability be on this if he should pass before me? Am I legally obligated to turn this over to the children because it states it in his divorce? There is no written will at this time indicating anything for his...
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Does my child need life insurance? When we consider life insurance for our family needs, it is typical to ask the question of how much life insurance you need for a child. Even among experts, the answers differ, but here at Unite Life we have a general answer: none. It may sound surprising for a life insurance company to be advocating not getting life insurance, and indeed there is no minimum life insurance age limit with children’s insurance being readily available, but as honest advisors we tend to steer away from it. Life insurance is a product designed to provide financial support when someone intrinsic to the financial stability of the family is sadly no longer there. When one...
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Pros and Cons of Buying Life Insurance for Kids If you’re a breadwinner, it’s likely you either own or plan to buy life insurance to protect your family’s income. And if you’re a parent, you might have also heard about juvenile life insurance policies, which are available to anyone under age 18 and pay a benefit in the event of a death of a child. But if your third grader’s earnings consist of the money she makes from her lemonade stand, is it really necessary to buy her a life insurance policy? It depends on whom you ask, and what your personal needs are. Critics say only a small percentage of families would actually benefit from juvenile life insurance. But...
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A reader, Arlene, recently asked a question in my article “ investing on behalf of kids ” about obtaining “Whole Life Insurance” for their young children. A financial planner suggested that obtaining permanent insurance for their children is a good idea to invest in their future. Hello! A financial planner thinks it’s a good idea to get whole life insurance policies for our three children, each $100,000 policies. Is this a good idea? I know this doesn’t necessary pertain to their education future however it is still in regards to their future and I’m really struggling to know if this is a good path to take. We will be paying $1500/yr per child for twenty years....
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The government should give National Insurance credits (NICs) to parents who failed to claim child benefit, the Office for Tax Simplification (OTS) has proposed in its latest report. This would help people who took time off work to care for children, and have gaps in their National Insurance record as a result. The OTS is tasked with giving independent advice on how the government could make the UK tax system easier to navigate. The latest recommendation comes from its ‘Taxation and Life Events’ report into how tax affects people during life-changing moments, including having a child. Find out how the recommendations could affect you, and why opting out of child benefit could...
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Buying a home is increasingly a multigenerational family affair. Four in 10 parents recently surveyed said they expect to help their children buy a home. That’s more than double the percentage of parents who themselves got help from their parents when they bought their first home. Home prices that have been rising faster than wages, combined with burdensome levels of student debt, are fueling this trend. Moreover, helping with home ownership is a here-and-now assist that can transform a child’s financial life, rather than waiting to bequeath money down the line. Whether you are the Bank of Mom and Dad or the adult child eager to buy, a successful intra-family deal requires...
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The prospect of a child falling critically ill is something we just don't want to think about. Which is why the vast majority of critical illness insurance policyholders don't even know whether their offspring are included. Claiming for children is, sadly, not uncommon. Scottish Provident, for example, reports that they are the fifth most common claims after heart attack, cancer, stroke and multiple sclerosis. Ed Stuart Brown, head of protection at Friends Provident, says: "Looking at the latest data in 2008, a shocking 4% of claims were for children – most of them for cancer." Matt Morris, spokesman for independent specialist adviser Lifesearch, warns: "Many people take out critical...
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Protect you children with inexpensive term insurance Is term insurance a good idea for children? As a parent, you know how important it is to have enough life insurance in place on yourselves, so that your children would be taken care of, should something happen to that in mind, I don’t want you to even consider buying life insurance on your kids, unless you have adequate life coverage yourself. So, assuming that you and your spouse are adequately insured, let’s talk about life insurance on your children. You have 3 different options in insuring your kids, and I will explore and explain all of them below: Child Term Rider – a very inexpensive way to insure children, but it...
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Life Insurance for Children: Pros and Cons of Buying One You probably heard from an insurance agent that you need to buy life insurance for your child. Getting life insurance for your kids has advantages and disadvantages. It’s a topic that’s often discussed among financial advisors, and I’d like to share some of my thoughts about it. Read on and learn about the pros and cons of getting life insurance for children Buying life insurance for children has become a debated issue in financial circles. Those who are for it assure parents and grandparents that thinking of coverage is a wise thing to do. They say that it improves children’s insurability and the chance to buy...
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I have been receiving requests from parents of minor children looking for life insurance protection for their children who have congenital heart defects. A recent request was for a 3 month old baby. I understand their concern but unfortunately, many of the no medical life insurance products do not start until age 18. That said, there are ways to insure young children who have preexisting health conditions and fall into the “hard to insure” category. In some cases they may already be covered. If you or your spouse has a group benefit plan at work, check the benefits booklet and see if there is “dependant life” coverage included in the plan. Many plans offer a life...
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