No one likes to think about death. It is an uncomfortable subject that is easy to ignore…until you are forced to deal with it. Unfortunately, too many of us ignore the financial implications that death can have on a family – especially families with young children.
The death of one or both parents of young children can place a sizeable financial burden on the surviving grandparents of those children. Grandparents, especially those in retirement who find themselves responsible for the ongoing financial support of their grandchildren, are often faced with expenses that they cannot afford. Even if one parent is still living, the financial stress of losing the double income may be too much to handle to afford the future needs of:
- General child upbringing
- Medical costs
- Educational expenses
The best way to protect your surviving spouse, young children, parents and in-laws if you suffer an untimely death is by purchasing inexpensive term life insurance. The payment of premiums on term life insurance may be the most important gift that you can give your family.
Term life insurance can protect your family against:
- The loss of one income
- The additional cost of childcare
- The need for grandparents to provide financial support
- The need to move to a smaller, more affordable residence
- Feelings of resentment among surviving family members
- Negative relationship changes among surviving family members
Term life insurance provides an inexpensive alternative to covering some or all of the financial impact from the premature death of parents with young children. This is a solution that will help maintain the grandparents’ retirement nest egg – but best of all, it can help the surviving children and parents lead more independent and stable lives financially.
Keith Schiller, Esq., shareholder of the Schiller Law Group in Alamo, California, has over 40 years of experience with estate, taxation and business succession planning. He is the author of the award-winning book, Estate Planning at the Movies® – Art of the Estate Tax Return (“706 Art”). In his book he cites a term life insurance policy example from Alan Kizor, Financial Representative with The Principal Financial Group® in Walnut Creek, California.
20-year $500,000 policy for healthy non-smoking parents
- $290/year for a 35-year-old male
- $260/year for a 30-year-old female
20-year $500,000 policy for healthy non-smoking parents that will accelerate some or all of the $500,000 in the event the insured is diagnosed with a critical illness or conditions (heart attack, cancer, etc.)
- $370/year for a 35-year-old male
- $280/year for a 30-year-old female
The level of coverage appropriate for your family will vary. The point is that with a very modest investment, you can provide peace of mind not only for yourself but for the rest of your family.