Life Insurance For Your Adult Child
There comes a time in each parent’s life when that child becomes an adult and is ready to fly the coop. It deserves a full financial plan to help you take care of your aging years. Your children are financially independent once they move out, get married, and have a child of their own, but there is always a risk that they might need financial help later on.
If you die, the money from life insurance policy can be credited towards your children’s expenses that they may incur as adults, e.g. taking care of your aging years. Life insurance for your adult child can help your child and grandchildren pay off some of their mounting education debts.
Life insurance for parents should have the same financial goals as life insurance for kids: to help them handle the financial responsibility of raising an unexpected child. Life insurance for adults is also known as adult coverage, and can be bought as single life or joint life.
According to the Council for Disability Awareness, disability rates for working-age adults are higher for younger and middle-aged adults compared to older age adults. By the time a working-age adult reaches 60 years old, their disability rate dramatically decreases. This is why a working-age adult should consider purchasing short-term disability insurance.
Deciding How Large of a Policy you need
When deciding how large of a policy to purchase with a life insurance company, there are a variety of factors you should take into account.
There are no standard rules for how much life insurance to buy. It’s recommended that you get as large a policy as you can afford, up to 20 times your annual income (providing it’s affordable).
When purchasing a life insurance policy for the primary purpose of covering outstanding debts, make sure to only check the box that says “death benefit. â€