Providing the best future you can give your children takes hard work and planning. Life insurance is one of the financial investments that you can make to ensure that your child's financial needs are taken care of, even when you are no longer around to do so.
Educational benefits of life insurance
There are many financial balls that you have to juggle to ensure that your children are taken care of, one of which, is their education. However, in the unfortunate event that you pass away you want to make sure that they don't have to struggle to pay for things such as school fees, residential fees, and more.
Your life insurance payout can be used to cover the fees that come with putting your child through whichever educational phase they are at. You can add your child as a beneficiary of your life insurance policy to make sure that the payout goes directly to them.
Having a will in place can give you more control of when they will receive access to the payout if they are too young to receive it upon your passing. You can also choose a trustworthy guardian in your will to ensure that the payout is handled in a manner that will benefit your child when you have passed on.
It can be used to handle daily expenses
Life insurance policies are flexible. Once your loved ones have received the money, they can use it to handle a range of expenses. Should you choose your child to receive 100% of the payout amount they will be able to handle expenses such as:
Rent or paying off the mortgage
Buying a car
Paying for educational fees
Buying educational equipment
Paying off any debt you may have accumulated
The amount can be used as they see fit to ensure that their financial needs are covered.
Is your life insurance enough?
Checking to see if your life insurance is enough is crucial to ensuring that your loved ones are adequately covered. You can use our life insurance calculator to find out if your current life cover is enough. However, if you are not sure how much life cover you need you can:
Take your salary and multiply it by 180. Take the amount and subtract the value of your assets (House, income, pension fund). This will equate to the recommended cover amount you will need. However, it is important to speak to an insurer to find out what will be most suitable for you.