Why Life Insurance Should Be on Every Parent’s Shopping List
During a recent trip to Costco, I struck up a conversation with a few young mothers waiting in the checkout line. As we chatted about shopping and family life, I asked a simple question: “Have you purchased life insurance to protect your family?” To my surprise, not one of them had.
These women clearly adored their children, yet hadn’t taken the crucial step of securing their financial future. The truth is, life insurance is both affordable and easy to obtain. Online platforms like SelectQuote or Accuquote make it simple to compare and purchase term life insurance policies.
If you have young children, a 20-year level term policy is a smart choice. “Level” means your premium remains the same throughout the term. For example, a healthy 30-year-old woman might pay just $20 per month for a $500,000 policy. At age 35, the cost rises slightly to around $25, and even at 40, it’s typically under $35 per month. That’s less than a dollar a day for peace of mind.
Once you’re ready to buy, it’s essential to name a beneficiary. However, naming a minor child is not advisable. Children under 18 cannot legally inherit money directly, which means the courts would step in to manage the funds—a process that can be time-consuming and stressful.
A better solution is to establish a revocable living trust and name the trust as the policy’s beneficiary. While it may sound complex or reserved for the wealthy, a trust is a straightforward and effective way to protect your family. You remain in control of the trust during your lifetime, and you appoint a successor trustee to manage the assets if something happens to you.
In the event of your untimely passing, the life insurance proceeds would go to the trust, and your chosen trustee would follow your instructions to support your children’s needs—whether that’s education, healthcare, or daily living expenses.
Life insurance isn’t just a financial product—it’s a powerful act of love and responsibility. Don’t wait. Take the step today to ensure your family’s future is secure, no matter what.
