Life insurance strategies may not be top of mind for a very busy single parent. Whether you are or expect to become a single parent however, here is a checklist of major challenges and decisions the merit a look at your life insurance strategies:
Set up a budget and stick to it.
It is critical to pay attention to how money is spent for immediate needs and long-term financial goals. Save for education. It is important to plan properly for this significant expense.
Update your will.
If you die without a will, issues involving the children and property will be decided by a probate judge without taking into account your wishes. If children are minors, be careful when naming a guardian. If you don’t name one, the court will choose one who may be unacceptable to you. The individual you select must be capable and willing to assume the responsibilities of raising the children if anything should happen to you.
Set up a trust for minor children.
A will can establish a trust to better protect children’s financial interests, and control when and how your assets will be distributed to the children.
Arrange to review your life insurance needs immediately.
You may be the only financial support for the children, making life insurance an even greater necessity.
Plan your retirement.
If you have been through a divorce, what retirement income should you plan on? Life insurance can be a valuable and versatile financial asset that may be able to help individuals and families deal with a variety of financial problems. One of life insurance’s biggest advantages is its flexibility.
Policies can provide benefits for a limited number of years or for life. Premium amounts can be large or small. Money may be put in or taken out if the policy holds cash value. Benefits may be received during life or paid to beneficiaries after death.
When properly handled, cash value life insurance policy distributions can be income tax-free. Because of its great versatility and flexibility, life insurance can be used to meet a wide variety of financial needs.
All the single parent… we invite you to have a conversation with a Ziff Agency professional about how solid life insurance strategies can protect you and your family. Contact us directly here.