There are some parents who don’t get life insurance for their children because they don’t want to burden them with financial responsibility. The problem is that if something happens to you, your child won’t get anything. If you die before your kids turn 18, they’ll lose out financially.
You should consider buying life insurance for your children even though you might not think you need it. After all, why take away from your kids’ inheritance? Corey Kaster from Inbundance Wealth Management in Portland reminds us that they deserve to benefit from your financial security as well.
Getting life insurance should be a priority for everyone
Why? Because if something were to happen to you, your children would need financial security in order to survive and pay off their own debt. Getting life insurance for them is the best way to ensure they have a stable source of income after they’re gone. In addition, it helps provide peace of mind for them knowing that your family is taken care of financially. If you do not get life insurance for your child, then you could potentially leave them without money at a time when they really need it. Therefore, I recommend you consider getting life insurance for your children. Here are some reasons why you should get life insurance for your kids:
Financial Security
If something happened to you today, how long would it take for your children to earn enough money to cover any debts? How about two years? That’s right. Two whole years! So, if something did happen to you, what would happen to your children? Would they have no means of paying off their bills? No, of course not. They’d still have access to credit cards and loans, which they wouldn’t have otherwise. So, if something did go wrong, your child would probably end up paying for it even longer than necessary. Instead, having life insurance ensures that your children will have the funds necessary to pay off all of their debts immediately.
Peace Of Mind
If something happens to you today, who takes care of your children? Who helps them out in times of crisis? Who pays their rent? Who buys groceries? Who provides medical assistance? Who handles schoolwork? Who cares for them while you’re away at work? Who does everything for them? When you die, who does all those things? These questions may seem irrelevant, but they actually matter a lot. If something were to happen to someone else in your family, these questions would come up immediately; however, if something were to happen in your case, these questions might never arise. Having life insurance means that your children won’t ever have to worry about what happens after you’re gone.
Estate Planning
Having life insurance for your children doesn’t just protect them in the event of your death, but it also safeguards their future well-being. By purchasing life insurance policies, your children gain control over their inheritance. What happens if you don’t purchase life insurance for your children? Well, let’s say you have three children. Let’s also imagine that your first child dies before you do. Now, the remaining two children inherit $500,000 each. But, since neither parent purchased life insurance for either child, they’ll share that amount equally between themselves. However, had both parents purchased life insurance for their respective children, the surviving child would receive the entire sum outright. Thus, providing your children with life insurance gives them the freedom to decide whether they want to sell or keep their inherited property.
Taxes
Life insurance for your children can be tax deductible. When you buy life insurance for your child, the premiums are not included in taxable income. You may also be able to deduct some or all of these premium payments on your federal taxes if certain conditions apply. For this, you can contact Insurance Masters NW to know the available options.
Provide financial security for them down the road
In 2016, nearly 50% of millennials didn’t have enough savings to cover at least three months’ worth of living expenses. Most Americans believe they should save enough money for retirement or emergencies without thinking about saving for college, healthcare, etc., too. So we can’t understand what might be the circumstances your children might be in, it’s better to be prepared.
Corey Kaster from Inbundance Wealth Management in Portland helps people understand their finances so they can make informed decisions about their future. Part of their goals is to save the family time and effort by providing timely, personalized service that makes sense for all members of the family.
This article was written and produced on behalf of Cory Kaster from Inbundance Wealth Management.
