It’s something no parent ever wants to think about – dying before their children are not yet old enough to take care of themselves. It’s not just a question of who you can trust to look after them and give them all the love they need; it’s also a question of who will pay for the good education you want them to have, the holidays you know they’ll love, and the extra murals they show such talent for. Providing for your children’s needs should you pass away prematurely is one of the main reasons why parents take out life insurance. Here are three things you should look out for when considering taking out life insurance to protect your children in the future: Education costs typically increase...
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Who Can Benefit from My Life Insurance You can choose pretty much anyone to be the beneficiary of your life insurance; spouse, civil partner, child, friend, other relative or charity. The choice of who should benefit from your policy should you pass is an extremely personal one and the decision should be yours and yours alone. Your chosen insurance company should not influence your decision for who should be your life insurance beneficiary, but they may encourage you to choose someone who has your best interest at heart and is concerned for your welfare. Once you have chosen your beneficiary you don't have to tell them, in some cases beneficiaries don't know until the policy holder has...
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Life insurance is one tool which can help create provisions for creating an estate to take care of the child’s funding needs. Parents of a special need child have concerns about the care and finances for the child, after their lifetime. Life insurance is one tool which can help create provisions for creating an estate to take care of the child’s funding needs. Ideally the life insurance policy amount must cover not only the child care expenses but repay all the liabilities of the parents. This will require identifying the insurance needs and then buying the required insurance coverage. Term life policies are the simplest policies to consider. However, many parents buy endowment policies...
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Q. I have a newborn and a five-year-old. I keep getting mailings about buying life insurance for the kids. I think it's scammy. What do you think? A. Scammy isn't the right word for it. People often buy life insurance to replace the income of a breadwinner. Unless your child earns income and supports your family, you may not need the policy. But there are reasons when a policy could make sense, if you have the extra cash in your budget. Whether you should buy should be based on your financial objectives, said Ed Gaelick, a Chartered Life Underwriter and Chartered Financial Consultant with PSI Consultants in Glen Rock. First, he said. there are many "whole life" imitations out...
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Life Insurance For Children Do children need life insurance? No, children do not need life insurance. Life insurance’s primary purpose is to pay off debts and replace income for the dependants we leave behind. Children don’t have dependants; they are dependants. Then why do people take out policies for their kids or grandkids? Whole life insurance is taken out on children primarily because it is one of the only vehicles whereby a minor can get tax-efficient investment growth. Minors can hold RESPs but not TFSAs, RRSPs etc. like adults can. Who should consider whole life insurance for their children? People who are financially secure with good cash flow. And who have already...
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Insurance for Children Authored By: Legal Aid Services of Oregon Information Does the parent who is ordered to pay child support also have to provide health insurance for the child? When ordering child support, the court must order one or both of the parents to provide health care or coverage if it is available and reasonable in cost. If private health insurance is not available, the court could order a parent to apply for public health insurance, such as the Oregon Health Plan (OHP) or to provide private health insurance when it becomes available. The court also can order the parent paying child support to pay something towards the cost of OHP as part of the child support order. The...
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Why do people take out life insurance on their children? They do so largely because it's being sold to them. The insurance companies generally push them on the basis that if you have to pay for a funeral and burial, the cost would devastate a family's finances. In some rare instances that might actually be true, but not generally. Should I take out a policy on my child? Generally no. When they sell you a policy they have to dance around a catch-22 - if you have enough money to afford the 'cheap' life insurance, then you have enough money to pay for a funeral and burial that's probably not going to happen. If you don't have enough money to pay those expenses in the rare case that a child...
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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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