Life insurance is a topic of conversation in more and more households today, particularly as the current health crisis develops. Parents are asking the painful question, “What will happen to my family if something happens to me?” Most often, the main reason my clients consider taking out life insurance is to ensure that their spouses and children will be in a position to financially navigate the loss of their loved one when they pass away.

Buying life insurance is a key component of any financial strategy.  But like any well-intentioned strategy, there are some common pitfalls to avoid, particularly when it comes to naming beneficiaries.

A key component to a solid life insurance strategy is taking the time to carefully plan the way in which the funds will be distributed and to whom. In my years of working with families, I have come to learn that many parents don’t understand the consequences and complications that come along with making their minor children beneficiaries on a policy.  This common pitfall can lead to a whole host of legal snags and potential challenges for the family during what would be a very difficult and dark time. So what can you do to avoid this?

While my area of expertise is to educate and guide my clients on the best insurance strategies that align with their goals and objectives, part of that work is recommending and collaborating with other professionals whose consultation will ensure the best outcomes for them and their family. Enter the Estate Planning Attorney. 

Particularly when minors are involved, I always recommend my clients meet with an attorney to discuss estate planning strategies that ensure the money will get into the right hands and is managed in accordance with their wishes.  I have spent the better part of my career aligning myself with these professionals to give my clients the most comprehensive guidance and resources, resulting in the very best service possible.  

This article was published just a couple of months ago and it does an excellent job of highlighting the potential complications associated with naming minor beneficiaries as well as  offers some great insights into how to avoid those mistakes. 

There are several options as to how to leave the money to your minor children, all of  which you should explore before making your final decision.  No one but you knows what is in the best interest of your children and what you want for them in the event you are not here to provide it yourself.  Helping families take care of their loved ones in this way is the best part of the work that I do.  I hope you found this insightful and helpful. 

Please don’t hesitate to reach out to me if you have any questions about your current policies, or if you’re interested in setting up new ones.