If you have a child then it is likely that you will have plans for their future. Many parents would like their children to go to college and get a good education so that they are able to get a great job. This is a great goal to have, but it is important to make sure that you plan well financially so that they are able to achieve this. Going to college can be very expensive.
Life insurance for parent
It is important to make sure that the child has a secure financial future. In order to achieve this life insurance for their parents can help. It means that if anything happens to the parents, there will still be enough money for the child to be able to afford to manage financially until they are old enough to earn their own money. It can be something that makes the difference between them being able to afford to go to college and not being able to afford it.
Life insurance for student
If the student takes out private loans in order to pay for their college tuition and other expenses then these will pass to the parents if they die. This will also happen if the parent co-signs the loan agreement. Although no parent wants to think about their child dying, it can be very expensive if they do die and the loans have to be paid off. Sometimes it is requested that the whole lot be paid at once too. The life insurance would be a good gift and would able to cover those costs. It is worth checking the loan details though as some will get paid off if the student dies and if that case no insurance will be necessary.
If you want your children to have an easier time in college, then it can be really helpful to them if you can help financially. By saving some money each month from when they are born, you will be able to build up some money so that you can help them out when they are students towards the cost of it.
Child trust fund
A trust fund can be set up for a child when they are born that will pay out when they are eighteen. This can be a great way to save up some money for them. It can be used to put money in to regularly or lump sums of money when they are given money gifts.
June 20, 2013 – 9:50 AM - | Posted in Financial, Home Life | 1 Comment »