A few months ago, I wrote about the importance of having life insurance to help provide for your family upon your death. Today I write about life insurance again, but from a different perspective: what if something unexpected happens to your child? I know that no one likes to think about this scenario, but just as you would for your own life, you should think about the consequences of your child’s untimely death.
Most important in this scenario is to consider: have you co-signed your child’s college, vehicle, or home loan? If so, you’re not the only one. The recent lender market’s tougher guidelines have resulted in an increased number of parents as co-signers.
Many loans are not forgivable, which means that you, as a co-signer, are responsible for paying the balance in the event something happens to your child. Again, the last thing you want to think about is something happening to your child. On the other hand, if something does happen, you will not welcome the added grief of paying off a loan.
For approximately $15-18* / month, you can obtain $150,000 in life insurance for your child. If you name yourself as beneficiary, you’ve provided yourself with an option for paying off the loan. Furthermore, ownership of this policy can be transferred to your child at any time.
If this is something you need to plan for, be sure to contact your local insurance agent.
*Contact your agent for a rate specific to your child and your child’s health history.
