Term Life Insurance is one of the most important Financial Planning tools that can be used for young families trying to protect each others earning potential. Check out a real world example of why it is so important, I believe that many of you can relate to the same exact situation.
Q:I am 40 and just became a mother for the first time. I need to know, what can I invest in, and should I now have a will for my newborn son? I am a homeowner and I co-habitate with the father of my child so I want to make sure my son would be provided for if something were to happen to me.
A: Congratulations and welcome to motherhood, the trip of a lifetime. The questions you’re asking are excellent, as it takes more then diapers and bottles to keep your baby safe.
A simple will — one for you and one for the baby’s father — will address who should be the baby’s guardian if either of you cannot be. That takes a lot of thought, and sometimes a little arguing. Know that if you don’t choose the guardian in a legal document (the will), the courts will then decide, and that may not be in your baby’s best interests, especially if there are relatives fighting over him.
You also want to leave some money for his care, so I would consider level term life insurance policies on your life and your partner’s. Should you pass away, the insurance money could go in trust for your son to pay for his education, health and welfare. A trustee should be named, since he obviously can’t take care of things himself, and that can be each other or, in the event of a mutual accident, a successor trustee should be named.
Great advice, so make sure you get a free term life insurance quote right here from our website to see just how affordable the premiums can be!