Getting Life Insurance? Know How To Protect A Child’s Best Interests Many people don’t consider a life insurance policy a priority, with 43% of people not having any type of life insurance coverage. While most of us plan to live a long time, the unexpected can always happen. Being prepared is very important when you have kids, and life insurance can help ensure that your kids are supported financially in a situation where you pass away too soon. These tips will teach you how to keep a child’s best interests in mind when getting life insurance. Make Children Contingent Beneficiaries It’s common to list a spouse a the policy’s primary beneficiary, but what would happen to your life insurance if both of you were to get in an accident at the same time? Listing children as a contingent beneficiary is the solution to this problem. …show more content…
The contingent beneficiaries only receive money if the primary beneficiary also passed away. For younger kids, it even helps to make the life insurance policy part of a trust. Select A Plan That Allows Revocable Beneficiaries Beneficiaries fall into one of two classes: irrevocable and revocable. If you have the choice, a life insurance policy that has revocable beneficiaries is the best option. While you may list your spouse as the beneficiary now, you must realize that every marriage doesn’t last forever. The option for a revocable beneficiary means that you can change who receives the policies benefits at any time. Life insurance policies that have irrevocable beneficiaries can still have them changed. The big requirement is that the beneficiary must consent to the changes. This can be difficult if you are changing the beneficiary due to a divorce, and you now want the benefits to go directly to your kids or to their guardian. Give Percentages Instead of Dollar