subject: What Do Real Parents Think About Life Insurance Policies? [print this page] What Do Real Parents Think About Life Insurance Policies?
Today we examine some comments from real life parents about life insurance policies and their attached issues.
"My Mum flipped out on me when I mentioned taking out life insurance policies for my kids, she said that the most I would need is a funeral plan and anything more is morbid ... she doesn't understand that if I lost a child, it's not like I would be able to hop in the car and go to work the next day".
This grandmother's reaction is quite common. Many people still hang onto old superstitions about inviting the things you think about into your home, and worry that thinking about death means that they'll die sooner. Once you recognize the objection, it is quite easy to see where it doesn't stand up!
And the mother in this situation is quite right that life insurance policies for children can provide a much-needed safety net for the time when parents are grieving and cannot return to work. The standard two days of bereavement leave that you get with a major company simply wouldn't cut the mustard if you lost a child.
"As I get closer and closer to parenthood, I'm starting to realize how badly I need life insurance..."
Right! Becoming a parent is the catalyst that many people need to start making financial plans for 'in the event of their death'. Prior to parenthood, we tend to think that our partner would simply manage somehow, the house would be sold to cover the mortgage and everything would pretty much tick along.
Becoming a parent is an excellent reason to get a life insurance policy - just make sure you choose one that allows you to increase your benefit as the size of your family grows.
"I'm about to be divorced and worried about future child support payments if my ex-partner dies. Can I get a life insurance policy on them and name my children as the beneficiary?"
Buying life insurance policies on people other than yourself, a child or current spouse is common in Australia. However you will need the consent of the other person as they will be listed as the life insured, and you as the policy owner.
However, if you're worried about the future support of your children, you may be able to make it a condition of the divorce that your ex-partner maintain their own life insurance policy, or that you have enough access to them to maintain one which you pay for. Check with a solicitor.
Life insurance policies can be quite a sensitive issue, and far more emotionally and logistically complicated than just paying a premium and collecting when due! They are however, very worthwhile!
welcome to Insurances.net (https://www.insurances.net)
