by Insurance Maze » Fri Feb 29, 2008 05:24 pm
There are many single Moms and Dads out there who oftentimes have the sole responsibility of caring for young children.
If you are a single parent and want to purchase enough life insurance to guarantee that your minor children are cared for if you should die suddenly, how would you handle the "beneficiary" designation?
What steps would you take to allow you to be comfortable in knowing that your children would benefit from the life insurance proceeds?
If you are a single parent and want to purchase enough life insurance to guarantee that your minor children are cared for if you should die suddenly, how would you handle the "beneficiary" designation?
What steps would you take to allow you to be comfortable in knowing that your children would benefit from the life insurance proceeds?
Posted: Mon Mar 24, 2008 06:48 pm Post Subject:
I would personally recommend the death benefit be paid out into a lump sum annuity paid out over 20 years into a trust set up for the child. The annuity is going to assure all of the money is not used up too quickly.
Here's an example of the payout:
A $100,000 death benefit, paid out over 20 years on a fixed 4% annuity would payout $7,75.17 annually. This would provide approximately $590 monthly for the child.
Many people prefer annuities to payout death benefits to their children, even grown children, to assure they will not blow it all too quickly.
Posted: Tue Mar 25, 2008 11:21 am Post Subject:
Hello, ERB. I'm sorry it took a while, to answer your question. "Will I be deployed again?" I hope not.....not anytime soon, anyway. My POA, who is my dearest friend, is jsut like family. I meet her before I was married, myson was bron, etc. So..I guess you can say my son has' grown up' with her. She is VERY dependable. i think that's the problem with Insurance policies..in general. You need to decide who you can trust.
Posted: Tue Mar 25, 2008 11:13 pm Post Subject:
Thats even a better idea MBTexas. Things shouldn't come too easily or our children do not learn the value of the word work or money.
Posted: Wed Mar 26, 2008 12:41 am Post Subject: life insurance
On my Life Insurance ( through the military), I have a 'trust' set up for my son. If something happens to me, he doesn't have access to his %, until he reaches the age of 25. TOO many people give such HUGE amounts of money, to their kids, when they are at a young age. Before you know it, the money is already spent.
Posted: Sun Mar 30, 2008 02:31 am Post Subject:
Agreed. Thats exactly what I am talking about. I believe money give too early doesn't help but hinders a achild. Think about it...when did you make most of your major purchases..Home? Good car? I know mine didn't come in my teen years. Work is always a good lesson to teach your child.
Posted: Sun Mar 30, 2008 12:49 pm Post Subject: life insurance
Got a good one for ya'll!!!! Since I seperated ( and divorced) from my ex, I took his name off my Military Life Insurance policy. I did this some time ago. He's actually upset because I did this!! What the HECK!!?? This Life Insurance covers me 24/7. My ex is ALREADY talking that "without that money he can't pay his bills, etc." MY GOD..what is this world coming too!! My ex is really a 'mammas boy', and whatever "Mommy says..goes." ( I'm sure SOMEONE has dealt with this 'situation' before). My ex's parents din't think it was a good idea to take my ex off the Life Insurance. OMG!!...............he told me this and just about fainted!! I thought I would share this story with everyone!! :roll:
Posted: Sun Apr 13, 2008 02:18 pm Post Subject:
I would think that who ever will take care of your children would be the one who it would be on your policy, right.
I would not want my ex on my policy either, toooooo much hate and hard feelings there for me. I have since remarried to a much nicer man. :D :D
Posted: Mon Apr 14, 2008 10:08 am Post Subject: policy
In my 'Living Will', through the miltary, I have my POA to 'disturbute' the money to those on my Life Insurance. Since my son is 15 now, God forbid anything happens to me NOW, the money will be put in a Trust Fund, for my son. He can't get to this money until he is 25 years old, with "Supervision from POA."
Posted: Mon Apr 14, 2008 10:31 am Post Subject:
sdchargersfan, good plan, I still don't get where the ex is coming from? Was the 'excuse' so he could raise your son?
talking that "without that money he can't pay his bills,
Does he mean bills for the child? That's just nuts...I can't imagine any ex assuming they would maintain beneficiary status...that just blows my mind! :shock:Posted: Mon Apr 28, 2008 04:01 pm Post Subject:
This ex needs to grow up ...like yesterday. Let him get mommy to support him. I think you have a very well thought out plan. Tell your ex he needs to get his own life.
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