Life Insurance Quandary

You have kids and know you need it…but when someone mentions “life insurance”, premonitions of your early demise begin to stalk across your horizon. Here are some basic tips to purchasing this insurance you hope you never need. 

First of all, do you really need it? If your spouse and kids rely on you for their financial support, you may have other options.  If you have enough property and funds saved up, you may not feel the need to have this extra policy to help your kids if you should die before they are on their own.

Make sure you avoid the high premium insurance policy that offers a lump sum payment after a designated number of years, e.g., 20 or 30. Just go for the basic term insurance. You can get a major amount of coverage for a fairly small premium when you are younger as, statistically, you will live quite a bit longer.

Keep in mind that minors as beneficiaries can cause all kinds of extra fees, diminishing the actual amount your child will receive. Name a trustee instead, someone you trust to take care of your children until they are grown.

Most likely your family will not need your life insurance, but if you die young, the extra insurance payments may mean an easier financial transition, college funding and even a prosperous financial future for your kids later on.