Nobody likes talking about death, but it’s literally inevitable. And while many parents worry about how to make sure their children are happy and healthy now, few stop to ask themselves, “How will my children be protected when I’m gone?”
The good news is that life insurance can protect your children when you’re gone by giving them a financial lift during what will be a heartbreaking, stressful, and emotional time.
Like renters insurance or auto insurance, the purpose of life insurance is to protect someone — in this case, your children — when the unexpected happens. Anyone can take out a life insurance policy, and as long as you list your children as your beneficiaries, you can be sure they’ll be protected if and when you pass away.
Below are five ways that life insurance can protect your children when you’re gone.
1. Life Insurance in Texas Covers Your Funeral Costs
Did you know that the average cost of a funeral and burial or cremation in Texas is $10,000? That means that when you pass away, your children will need to cover these costs, as well as the costs of booking last-minute travel, missing work and possibly childcare while they settle your affairs. Very few people are in a position to spend so much money on such short notice.
Your children will already be shocked enough after losing you. Why put them through the stress and nightmare of having to suddenly find thousands of dollars? By naming your children as beneficiaries, you’ll take the financial worry away and offer your children comfort and security during what will be a hard time for them.
2. Life Insurance Can Keep the Family Business Running
If you own a family business in Texas, then chances are that you want to pass on ownership of the company to one or more of your children and keep the business successful for generations to come. But even modest businesses can incur certain taxes when someone else in the family takes over. If the business doesn’t have the cash to pay these taxes, your children may end up having to put the business in a worse financial position just to keep things running.
Life insurance helps your children cover the taxes so that they can focus on building on your past successes.
3. Life Insurance in Texas Can Help Your Children Settle Your Debts
First, you can rest assured that no creditor or lender can ever go after your children to pay off your debts when you die. And if you name your children as beneficiaries to your life insurance policy, then your creditors have no right to the death benefit that goes directly to your children.
But keep in mind that there are other ways that creditors and lenders can get involved. For example, if you have a home or other assets that you intend to pass on to your children, those assets can be held up in probate until the debts are settled. For example, if you still have a mortgage on your house, then your children will need to pay off the mortgage themselves before getting the house, or else the mortgage lender can foreclose.
You can trust that creditors will do whatever they can to get what they can from your estate, which can be distressing for your children and even leave them without a home. The better alternative is to leave your children with a lump sum of money from life insurance that can allow them to quickly negotiate with creditors and lenders instead of suffering through a long and drawn-out court process.
4. Life Insurance Helps Your Small Children Have a More Normal Life
It’s bad enough losing a parent when you’re young. And even if you have a surviving spouse who can take care of your small children, the effect on the quality of life after losing your income will be devastating. This is especially true if your children are disabled or have special needs.
Having life insurance in Texas can make sure that your surviving children have everything they need to live as comfortable, secure, and fulfilling a life as possible after you’re gone. Their life insurance death benefit will ensure they always have health insurance. And when they’re ready for college, you can help them avoid racking up tens of thousands of dollars in student loans.
5. Life Insurance Helps Your Grown Children Achieve Their Dreams
Even when your children are grown, you can help them achieve their goals with life insurance. Do you have a child who’s about to go to college? Or perhaps one of your children still might get married soon or is looking to start a family and buy a house? These are all exciting life milestones, but they’re also expensive ones. And while parents are happy to provide some financial help when they can, there’s no guarantee that you’ll be around when the moment comes.
If they’re counting on you for a financial boost for a big family wedding or a mortgage down payment, life insurance ensures that they can still do all of these things in your name should you pass away unexpectedly. This is all the more important as the costs of housing, education, and even weddings have risen astronomically in the last generation. Leaving your children with a life insurance death benefit makes sure that they can access all the same happy opportunities that you enjoyed.
It’s Never Too Early to Start Thinking About Life Insurance in Texas
A big life insurance myth is that only older people should start thinking about getting a life insurance policy. But the truth is that no one knows when they’ll pass away. If you die unexpectedly, are you in a position to make sure your children are financially protected and secure? Life insurance is also much less expensive if you buy it when you are young.
At Baja Insurance, we offer affordable life insurance in Texas to give parents peace of mind and children financial security. Get an online quote for Texas life insurance now, visit one of our Texas offices, or call us at (800) 401-6870.