Reply to Kids as beneficiaries for life insurance

Forum Index » General Parenting Discussion

Reply to "Kids as beneficiaries for life insurance"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Agree withPP, do NOT make kids beneficiary! For us, spouse is primary beneficiary, trust is 2nd.  And yes, you could put your kids at 50% each (but as PP mentioned, do not so this!).  For us, if we both died, per our will, kids would go to my sibling who would also manage the trust. Sibling is stable and trustworthy and loves our kids as much as her own.

How much: enough life insurance on you so that your spouse can stay in the house you are in now (won't have to uproot/change life in the midst of grief because the mortgage is now unaffordable), and cover private college for both kids. Enough for spouse to do the same.  When ours were little, that was something crazy like $2 million for DH and $1 million on me (if he died, house and college paid for, if I died, college and FT nanny paid for).  I worked very PT, primary job was taking care of kids.  We did that through various private policies (worked with an insurance broker/friend), and through DH work (3xs salary came free, we paid for a few more times salary).  As kids got older, we reduced the amount (no more paying for extra at DHs work), because we've saved for college, kids would no longer need a FT nanny, and our house has less than $200,000 left on the mortgage.

And don't let the broker convince you to buy whole life insurance, just get 20 or 25 year TERM LIFE policies.  Whole life policy they will claim to be an investment in you, really, broker makes commission and you get screwed in fees and low returns on your investment.

Equally important if you do not have, is disability insurance for BOTH of you.  This is very inexpensive, but if you get injured and cannot work, I promise that whatever your work covers you for is not enough.
  Get a private policy - a real one, not talking about AFLAC. [/quote]

We did this exactly!

Question about disability insurance though - I am a SAHM (kids are little) - could I get disability insurance for myself and then it would pay for a nanny if I was injured/sick?[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics