McCrystal Insurance Brokers Issue 5 | Page 7

New Parents/Parents of Minors A new baby is a source of pride and excitement. It’s also a tiny person who, for the next 18 years – more, if he or she goes to college – is financially dependent on you. At the core of that is the responsibility for both parents to provide for a surviving spouse and child or children. Life insurance provides tax-free money to surviving spouses or guardians and children for Minor Children The loss of a child could be very devastating for a family and have parents wanting, or needing, to take time off of work. On top of that emotional toll, there are funeral and burial costs to deal with. “It’s uncomfortable for parents to imagine, but families should be protected with life insurance in the event of the tragic premature passing of a child”. Many times a minor child can be added to an adult’s policy via a child rider endorsement at a low cost. That rider can typically remain in effect until the child reaches age 18. Other policy alternatives include purchasing a whole life policy that a child can have for the rest of his or her life. That provides insurability guarantees regardless of health. income replacement, debt payoff which allows the family to maintain their current lifestyle. Life insurance planning should look beyond a child’s first 18 years. Parents wanting to provide for their children’s college education in the event of their passing should consider that expense when determining the amount of life insurance to purchase.