Does becoming a parent affect life insurance? If it does..what should a beneficiary do?
Total Comments: 15
Posted: Wed Dec 24, 2008 08:51 am Post Subject:
Who would the parent name as beneficiary?
Posted: Wed Dec 24, 2008 09:24 am Post Subject: insurance
Are you thinking of getting Life Insurance for just YOU? Even if you are going to be a parent, you don't have to change the name of the Beneficiary that you already have. ..that's up to you.
Posted: Wed Dec 24, 2008 09:51 am Post Subject:
Yeah, its truly important for the new parents to evaluate their current life insurance. This way they would come to know whether their policies are offering the right benefits at reasonable prices, the desired amount of coverage and the right designations for the beneficiaries. Once they do a fair analysis of their insurance requirements, then it would be easier for them to shop for the competitor's programs online.They might also consider another insurance agent.
Posted: Wed Dec 24, 2008 10:28 am Post Subject:
Parenthood would definitely change your financial needs and therefore is likely to affect the insurance requirements as well. The very purpose of purchasing life insurance is to secure the future financial needs of the dependants at the event of the death of the income generator of the family. Now,
If it does..what should a beneficiary do?
Who is the beneficiary in question? Are you talking about someone whom you have assigned as the beneficiary of the policy before you became the parent?
Posted: Wed Dec 24, 2008 10:38 am Post Subject:
Well, at the time of designating the beneficiary we need to keep in mind the insurable interest of that individual. Though the policy holder can act on his/he free will and can assign the policy benefits to anyone, but it may not always justify the act. If you have young children and spouse for whom you have to save, it'd be wise to assign that person as the beneficiary of the policy. It'd secure their financial needs.
Designating the life insurance beneficiary is an important decision. Hence, one should consider all the aspects before putting the name on the paper. IMO you may also discuss the decision with your agent before signing the policy document.
Posted: Wed Dec 24, 2008 01:21 pm Post Subject:
Hi guys,
In my belief it is absolutely necessary for the new parents to reconsider their beneficiary status as soon as their child is born. It is important for the policy holder to pick the right person as his beneficiary at the very beginning. If he fails to pick the right person in the beginning he may find it difficult to change this designation to another person later on.
He'd also need to ensure that he has chosen a primary as well as a contingent beneficiary in order to convey his funds directly to his family under circumstances that he passes away.
Merry Christmas!
Posted: Thu Dec 25, 2008 12:28 pm Post Subject:
Whats up!
Yeah..I've observed that parents are generally preoccupied with many other things during their childbirth rather than their life insurance.
Believe me, your joy would considerably be reduced when you'd feel that the delivery date is arriving and yet your family is not fully protected.
Parents should at least have that much insurance which allows them to deal with situations in the event the other one passes away.
For parents who are not earning (and staying back at home), insurance could be a good way to cover the extra childcare expenses.
bye-for-now.. Misty
Posted: Fri Dec 26, 2008 12:29 am Post Subject: insurance
you can have someone (parent or someone OTHER than the parent) as 'Primary' Beneficiary. Your child can be 'Secondary'. I have a Life Insurance policy, through the Military. My best friend is my Benficiary. My 16 year old son is 'Secondary' on it. I can change my son to the 'Primary' once he turns 18..if I want to.
Posted: Fri Dec 26, 2008 10:26 am Post Subject:
A minor child can even be named as the primary beneficiary. However, the policy holder is required to name a trust or a guardian as the recipient of the policy benefits on behalf of the minor beneficiary, otherwise the child may not receive the benefits till he turns adult. Hence, make sure that if you are naming the child as the beneficiary of the policy, you also appoint a trusted friend (or the other parent) as the guardian of the minor.
Posted: Fri Dec 26, 2008 10:33 am Post Subject:
Hi Misty, can you please explain how the life insurance plan can help with the childcare expenses? I think that the benefits of a life insurance aren't due till the insured dies. That means, that the fund isn't an option to me at the time I need the money for childcare. I would be greatly benefited if I can receive the money beforehand since I'm not qualified for the disability/unemployment benefits and is in dire need for the money.
Posted: Wed Dec 24, 2008 08:51 am Post Subject:
Who would the parent name as beneficiary?
Posted: Wed Dec 24, 2008 09:24 am Post Subject: insurance
Are you thinking of getting Life Insurance for just YOU? Even if you are going to be a parent, you don't have to change the name of the Beneficiary that you already have. ..that's up to you.
Posted: Wed Dec 24, 2008 09:51 am Post Subject:
Yeah, its truly important for the new parents to evaluate their current life insurance. This way they would come to know whether their policies are offering the right benefits at reasonable prices, the desired amount of coverage and the right designations for the beneficiaries. Once they do a fair analysis of their insurance requirements, then it would be easier for them to shop for the competitor's programs online.They might also consider another insurance agent.
Posted: Wed Dec 24, 2008 10:28 am Post Subject:
Parenthood would definitely change your financial needs and therefore is likely to affect the insurance requirements as well. The very purpose of purchasing life insurance is to secure the future financial needs of the dependants at the event of the death of the income generator of the family. Now,
If it does..what should a beneficiary do?
Who is the beneficiary in question? Are you talking about someone whom you have assigned as the beneficiary of the policy before you became the parent?
Posted: Wed Dec 24, 2008 10:38 am Post Subject:
Well, at the time of designating the beneficiary we need to keep in mind the insurable interest of that individual. Though the policy holder can act on his/he free will and can assign the policy benefits to anyone, but it may not always justify the act. If you have young children and spouse for whom you have to save, it'd be wise to assign that person as the beneficiary of the policy. It'd secure their financial needs.
Designating the life insurance beneficiary is an important decision. Hence, one should consider all the aspects before putting the name on the paper. IMO you may also discuss the decision with your agent before signing the policy document.
Posted: Wed Dec 24, 2008 01:21 pm Post Subject:
Hi guys,
In my belief it is absolutely necessary for the new parents to reconsider their beneficiary status as soon as their child is born. It is important for the policy holder to pick the right person as his beneficiary at the very beginning. If he fails to pick the right person in the beginning he may find it difficult to change this designation to another person later on.
He'd also need to ensure that he has chosen a primary as well as a contingent beneficiary in order to convey his funds directly to his family under circumstances that he passes away.
Merry Christmas!
Posted: Thu Dec 25, 2008 12:28 pm Post Subject:
Whats up!
Yeah..I've observed that parents are generally preoccupied with many other things during their childbirth rather than their life insurance.
Believe me, your joy would considerably be reduced when you'd feel that the delivery date is arriving and yet your family is not fully protected.
Parents should at least have that much insurance which allows them to deal with situations in the event the other one passes away.
For parents who are not earning (and staying back at home), insurance could be a good way to cover the extra childcare expenses.
bye-for-now.. Misty
Posted: Fri Dec 26, 2008 12:29 am Post Subject: insurance
you can have someone (parent or someone OTHER than the parent) as 'Primary' Beneficiary. Your child can be 'Secondary'. I have a Life Insurance policy, through the Military. My best friend is my Benficiary. My 16 year old son is 'Secondary' on it. I can change my son to the 'Primary' once he turns 18..if I want to.
Posted: Fri Dec 26, 2008 10:26 am Post Subject:
A minor child can even be named as the primary beneficiary. However, the policy holder is required to name a trust or a guardian as the recipient of the policy benefits on behalf of the minor beneficiary, otherwise the child may not receive the benefits till he turns adult. Hence, make sure that if you are naming the child as the beneficiary of the policy, you also appoint a trusted friend (or the other parent) as the guardian of the minor.
Posted: Fri Dec 26, 2008 10:33 am Post Subject:
Hi Misty, can you please explain how the life insurance plan can help with the childcare expenses? I think that the benefits of a life insurance aren't due till the insured dies. That means, that the fund isn't an option to me at the time I need the money for childcare. I would be greatly benefited if I can receive the money beforehand since I'm not qualified for the disability/unemployment benefits and is in dire need for the money.
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