Protecting Your Children with a Will and an Adequate Policy from Reputable Life Insurance Companies
While the death of a parent can be an extremely traumatic event for children and adolescents, imagine if once they lost their guardian and caregiver they found out that there have been no provisions made for their care and upbringing. In fact, many children face something like this regularly, with a judge in a court of law deciding their fate, rather than the parents who know and love them. Do not leave this important decision up to a stranger. You will want to select a person who shares your values and will be kind, loving, compassionate, understanding, and yes sometimes even firm, with your children. This individual(s) will be responsible for consenting to medical treatment of your children, as well as all legal obligations on behalf of them. Below are some important steps that every parent should take to make sure their children's future is in safe hands.
Step One - Select a Guardian
This is probably one of the most difficult tasks for many of us, because it not only requires selecting the best person to fill your shoes, but it also depends on whether that person is able and willing to step in and parent your children in your absence. Many people feel that parenting is a two person job, and as such, they tend to select a couple with a stable marriage and family life. Plan on having a heart to heart talk with the individual(s) you select and discuss their feelings about being named. You don't want your children to pay for not doing this once you're gone.
Step Two - Take Out a Life Insurance Policy
At the very least, you don't want any of your estate eaten up by your burial costs. A basic policy can ensure that the estate is left intact for your children's upbringing. However, most people opt to take out a much more sizable policy to ensure that their children will have a good life that includes educational opportunities that they may have had if you had survived. You also want to think about the financial burden that will be placed on the guardian, and a portion of that needs to go toward housing, food, clothing, etc. Raising children to adulthood is an extremely costly venture, and you don't want your children's guardian to bear the brunt of it when a simple life insurance policy can ease that burden for all living parties involved.
Step Three - Establish a Will
Once you have a guardian selected, you will need to make it legal in the form of a will. Each parent should have their own individual will. Some things to consider when you begin this process is:
- Do you want the guardian to oversee your the finances for your children's estate? Or would be it better to separate that task to a different person (particularly if the guardian would make a wonderful parent but isn't necessarily savvy with money). The best option is to have one person handle the entire task, but sometimes concessions need to be made.
- You need to specify distribution of your assets, including any valuables or properties that you own that you wish to pass down.
- You will need to have a life insurance policy that provides for the needs of your children, including food, clothing, shelter, education, etc. until they are ready to take on this task on their own.
You will need the help of a lawyer in most cases while preparing a will, and you will need to compare life insurance companies in your state for the policy that is right for your particular situation.