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.