Home >> Life Insurance .... Need help deciding how to destribute?
Life Insurance .... Need help deciding how to destribute?
I am 25 years old and currently looking for life insurance
I am interested in a $50,000 policy
Here my dilemna ~
I just had a baby (the money she would recieve would go to a trust fund per insurance company)
I am unmarried but want to leave my partner a portion so that he can care for our child if I die
I also want to leave aportion to my sister (my only family besides my daughter) she is older
How much should I leave each?
I was thinking
$15,000 for my daughter trust
$20,000 childs father
$15,000 sister
I currently am not in credit car debt but have a car loan outstanding. I rent I do not have a mortgage ~ with this being said the money they would get would not have to go towards outstanding debt but towards funeral costs
Please help with advice about what else I may not have considered, etc
It doesn't matter. Those amounts of money are so small, they aren't going to significantly affect any of those lives.
I'm wondering why you chose that amount, what the GOAL is.
First, you should set the goal, THEN you pick the coverage limit that meets the goals, THEN you select the product that meets those goals at the most affordable price.
At your age, you can get a 30-year level term policy quite cheaply. But $50,000 is not enough - you should be looking at $250K - $500K policies.
First, you may want to consider a few more things about the amount of coverage needed for your loved ones.
To do this, use a life insurance calculator - http://www.term-life-online.com/term-lif...
Also, you may want to learn about your options for term life insurance and how term life insurance works - here's a good article to learn more - http://www.term-life-online.com/how-term...
30 year level term life insurance may be a good option to provide protection until your baby is grown and on her own.
Level term life insurance may provide you with rates and coverage that remain the same for the entire 30 year term of your policy.
One thing to consider is comparing several quotes for term life insurance in order to find out what is the lowest price you can get. Efinancial has been online for several years providing life insurance quotes. You just answer one form and get up to 12 Instant Quotes for term life insurance from top-rated insurers, with no obligation. To request your free quotes visit https://www.efinancial.com/smartquoteefc...
I hope that helps! Best of luck to you and your family.
I agree that you should consider more insurance especially since term insurance is so cheap. I think you should leave the bulk to whoever will care for the child. Kids are expensive. Can your partner or sister access the trust fund for the benefit of the child before he/she is 21? Why money to your sister? Will she be caring for the baby? Paying for your funeral costs or car loan? IF not it is a nice gesture but kind of short changes your partner as far as child caring expenses.
You want to make sure you and your child have health insurance and that you have disability insurance. Disability can be very expensive and could result in the inability to earn a living but still incur lots of medical expenses.
At this time in your life your priority should be your daughter. As your income rises then you can add the rest. $50k will net get very far but at least your thinking in the right direction.
first of all no one can take the money from a life insurance policy except the beneficiary. and it is not taxable in the state i live in. anything that you own they can seize and sell to pay off debts. your estate has to be settled before a beneficiary can own your property.
Perhaps You ought to google it first ,nevertheless if you prefer some direct resource ,here might be your choosing.You will find much more useful suggetions and tips for your question.Good Luck for you.http://insurance.online-assistant.info/c...
You should be considering having a financial needs analysis done to determine the amount of coverage you need exactly.
For instance, if you were to pass away tomorrow, where you live, would your car loan be written off or be the responsibility of your survivors?
Also, if you were to pass away be you want your child to be able to attend college or university? That amount should be built into the policy.
A term policy with a longer term because of the baby would be best. The financial needs analysis would determine this.
Not all term is the same. Compare apples with apples. You must look at renewability, convertibility, are child riders built in, is terminal illness included. Don't go on the web and pick the cheapest company someone you have never heard of. Often the difference is $2 to $3 per month. Often what you see on the net, you don't have details on what they are quoting you on and they are not and you are not comparing the same thing.
Get an agent out there. If the agent won't do a financial needs analysis you have picked the wrong sort of company. It should not be based on what you can afford but what you require/need. Then the agent can work with term and term riders to build a product suited specifically for your needs and your budget (both are important).
As to beneficiary why not leave it "ITF" In Trust for your baby. You can leave a % to your baby's father ITF your child. That way if he spends the money it has to be for the child's benefit. Also, you can then leave a % to your sister ITF your child and then a % for your sister if you want her to get an inheritance as well.
A good agent won't just place insurance with you. After the financial needs analysis they will come back and help you with financial planning for the future so that you are becoming debt free and financially independent.
Income protection (life insurance) should be only the foundation of your financial house. Finances require planning like a vacation. The Needs Analysis helps you plan for the future....