Dragging your feet can cost you a lot of money. Insurance agent Rebecca Palmer talks with Laura Coleman on the Adoption and Fertility Finance Show about the importance of adequate insurance before it’s too late for your family.
How much insurance is enough?
Rebecca shares some general rules about how much insurance you should purchase to take care of your family after you’re gone. They discuss the difference between term and whole insurance, and some different reasons you might choose one or the other. Rebecca cautions against relying completely on employee provided term insurance in the case of a job loss.
When can an adopted child be insured?
Term insurance for children is cheap and a prudent step to take to prepare for an accidental death. Having a small policy that can cover the funeral expenses of a child is a way for a young family to avoid the stress of trying to pay for a funeral. Rebecca fills Laura in on the details of waiting until the adoption is finalized to take out a policy on a child. She recommends that a parent take out a policy on themselves during the adoption process because the insurance applications takes longer for an adult.
How do you choose who should be the insurance beneficiary?
Rebecca goes over some rules and guidelines for the beneficiary of an insurance policy. Minor children cannot receive the proceeds of the policy, so it is important for a contingent beneficiary to be in place if both parents should die. For single parents, it is especially important to plan ahead. It may be helpful to create a trust and name the trust as a beneficiary of the policy. You can name a trustee who will take care of your child and your child’s money. This can be a good option if you do not have a trusted family member or guardian to take care of your child if you’re gone.
For more information about special needs trusts mentioned in this podcast, go here.
Rebecca Palmer is a licensed insurance agent in Tennessee and Georgia. She can be reached at: firstname.lastname@example.org or 423-413-9364.
You can find her on Facebook.
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Learn more about the Adoption and Fertility Grant Success Course and the Preparing Financially for Adoption course mentioned on the show.
|Paying for Adoption|
|Private group · 8 members|
|Providing support and resources to help you pay for adoption.|