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[quote=Anonymous][quote=Anonymous]I just received an offer for life insurance through my credit union. It got me thinking about what I currently have and if it's enough.

Right now, I have life insurance (3x my salary) through work and a $50K policy independent of that. My parents also have a small one to cover funeral costs, etc. All told, that's a little less than [b]$250K[/b].

I'm a divorced parent in my 20s, 4yo child, XH is not involved in our child's life by his choice. [b]My parents are the beneficiaries of all policies to keep XH from getting access to the money, they have been instructed to file for custody or at the very least, grandparent's rights [/b](XH is not a nice person and incapable of raising our child on his own, he would also cut my family off from our child in a heartbeat, he's already tried once). We've had multiple discussions about my wishes, my family is aware of and agrees with my concerns.

Do I need more? I want to leave enough so that my parents don't have to spend their own money protecting and maintaining access to my kid, plus I want some left for college (as XH and his family have already said they will not contribute anything to DC's college, no matter what).

There are multiple reasons DC is not my beneficiary and why I've told my parents to go for custody if I die, I don't really want to get into the dirty details. Is $250K reasonable? Or should I purchase more?[/quote]

If you want to leave enough for the guardian(s) to raise DC and send him to college debt-free, you'll need more than $250K, so if the  credit union pricing and terms are good, then yes, buy more.

More importantly re: beneficiaries, you need a will with a trust for DC's benefit.  The life insurance proceeds/beneficiary should be the trust, not your parents.  Your parents can be the trustees.

I don't know what would happen custody-wise but it is likely worth paying a lawyer for an hour or two of consult-time to discuss.  I would imagine that your DC's father would have a good shot at custody.  :-(  That makes setting up the trust that much more important.[/quote]

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