“If something were to happen to me, would you raise my child?”
This is, perhaps, the greatest trust one person can place in another. As a single parent, you may have already considered who will care for your child if anything should happen to you.
But the trust you place in another person results in an enormous financial burden – food, clothing, health care, hobbies, sports, vacations, even the need for a larger home means expenses add up. Where will the money to support your child come from?
According to IntelliQuote, a leading online life insurance agency, purchasing life insurance to ensure the future financial security of your children is an important part of financial planning. To make sure their needs are met, it’s important to regularly evaluate your coverage and take other important steps to establish a long-term plan.
Oftentimes, we forget that raising a child is financially taxing, and could be unrealistically burdensome on the child’s guardian. In addition to child-rearing and education expenses there are other costs to consider, such as medical care and final expenses.
Outstanding debts, such as credit cards, personal loans, mortgages and auto loans, must also be considered when purchasing a life insurance policy. While some assets attached to these debts may be sold to pay off associated debts, they are often liquidated quickly, so be conservative in your calculations of asset value.
Once you’ve calculated how much life insurance coverage you need, be sure to take steps to protect your intentions. A vital piece of your estate plan is your will – a legal document that specifies how your assets will be managed when you die. Verbal statements of intentions are often disregarded in formal legal proceedings; without a written will, the state will determine the disbursement of your assets and appoint a guardian for your children, which may not be in accordance with your plan.
Most often, the other parent is the appointed guardian next-in-line, but there are times when this is not the case. The other parent may be deceased, unwilling or simply unfit to be a parent. If possible, sit down with your child’s other parent and draw up a joint family care plan that designates the agreed upon future guardian and care of the child.
The most important first step is to work with a licensed life insurance agent, credentialed financial advisor and estate planner to ensure you are considering all scenarios and options to establish the long-term plan that’s best for you.
Information on life insurance can be found easily online at www.intelliquote.com. This post was promoted by Intelliquote, a leading online life insurance agency since 1997, IntelliQuote provides customers simplified, private access to compare, shop and buy life insurance online, including term life insurance. IntelliQuote offers clients a wide selection of competitive products from A-rated carriers, supported by licensed agents. This simplified approach makes purchasing a policy easy and straightforward while providing a savings of up to 70% per policy. IntelliQuote is a member of the LIFE Foundation and is committed to ongoing consumer education. For information on how to estimate how much coverage an individual might need, visit www.intelliquote.com. For more information, contact www.intelliquote.com, or 888.883.6855.
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