Orphan Benefits

Life insurance pays your loved ones when you die. Tax free. That’s a nice benefit following a tragic event that helps ease or eliminate financial burdens that death brings to a family. What happens if a family with young children loose both parents? A lot of questions and uncertainty come up.

• Who takes care of them and can they afford to?
• Will my children be a financial burden on someone?
• Will there be enough money to raise them?
• Will all of my death benefit from life insurance be used to raise them so that nothing is left over when they are adults?
• Will there be any benefit leftover for their college tuition?

Point being, that aside from the fact that someone else will be raising your children, there is the financial component involved. We want the best for our children, not leave them with little or nothing. Too many times you see where a “charity account” is set up at a local bank because the parents did not plan for the worst.

Thus the life insurance policy with an orphan benefit. That means if mom and dad pass away, then when the kids go to live with a relative or other guardian, they each come with $900 per month per child paycheck. Not only can you know that enough is being provided to feed them, cloth them and provide educational expenses, but also that your death benefit can be stashed away, growing with interest to be used later for things like college when they turn 18.

On top of all that, there is a college benefit they can apply for when they turn 18 which can provide up to $6000 year for four years to be used for higher education.

If you have children or grandchildren, then you need to have an orphan benefit in your life insurance or talking  to your adult children about adding one. Assuming your a grandparent now, then you will most likely be the one to take them in a parent-less situation.

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