This week’s post on Life Insurance is the third in our back-to-school series, focusing on estate planning for minor children. To read week one’s post on Guardianship, please click here. For week two’s post on Asset Management, please click here.
Life insurance is one of those things that many of us consider but never get past the, I-should-look-into-it stage. When you have minor children who depend upon your income for their health, welfare, and well-being, planning with life insurance may be a critical decision.
There are several reasons why life insurance might be a good choice for your family. Insurance can help…
- compensate for the loss of your annual income plus inflation.
- ensure your children to have enough money for college tuition and expenses
- provide your spouse with time off from work to recover from the loss
- create a legacy for family and an asset they can turn to for future needs
- pay for childcare, transportation, cleaning, cooking, and other household activities, if you are a stay-at-home parent
If these goals lead you to believe life insurance may be a good option for your family, here are some factors to consider when deciding the cost of your policy:
- your income (the industry standard suggests you cover ten times your annual income)
- the age of spouse and children
- your age and health
- possible future expenses — college tuition, etc
- estate tax ramifications
- charitable bequests
- debts that will need to be paid off — mortgage, car loans, student loans, credit cards, etc.
You can learn more about how best to plan for your family by contacting us to schedule a Family Wealth Planning Session, where we can identify the best strategies for you and your family. This month we have a special offer: Be one of the first FIVE to schedule a Family Wealth Planning Session in September and we’ll waive our regular $750 planning session fee.