Make Life Insurance Part of Your Child Protection Plan

Do you have a child protection plan in place for your kids? A child protection plan is aimed at keeping your child healthy, happy and financially secure in the event that something were to happen to you, a sibling or the child themselves.

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November’s Child Safety and Protection Month is the perfect time to create a plan or update your current one.

Putting Together a Rock Solid Child Protection Plan

Below is a quick rundown of what should be included in a child protection plan.

Life Insurance for Kids

Losing a child is a terrible event that can create a domino effect of further issues that only make matters worse. The last thing you want to have to worry about is finding the funds to cover funeral costs and taking off time from work. This is especially true if you have other children that will need your undivided attention during this trying time. Taking out a life insurance policy for your kids will mean you have a lot less to worry about and you can fully take care of your other children when they need you most.

Set Up a Trust

This part pertains to your life insurance. If you pass away and your child is still a minor they won’t receive the funds from your life insurance policy even if they’re named as the benefactor.

The best way to ensure that your child is properly taken care of if the worst were to happen is to setup a trust for them. Name the child as the beneficiary of the money in the trust, then name the trust as the beneficiary on your life insurance policy.

Name Guardians in the Event of Your Death

Losing a parent is traumatic for a child. They need love and stability above all else to help them get through the tragedy and to mentally and emotionally cope with what’s happened. Unfortunately, this can be difficult if you haven’t named guardians for your children.

In that scenario a judge will decide who is best equipped to raise your children, starting with grandparents. This could cause riffs among family members, have your child bouncing between family members or leave your child with a guardian that wasn’t your first choice. If the person you would prefer to raise your children isn’t a family member it would be extremely difficult for them to get custody. The judge doesn’t know you, your children or their exact needs, but you do. Play it safe by naming a guardian for your children. (see below for more)

Update or Create Your Will

Like your life insurance policy, your will is key to your child’s security if something were to happen to you. Without a will things could get tied up in courts, your children may not receive assets that were intended for them and they could go to a guardian that you don’t fully approve of.

A will clearly states how assets should be divided, who you prefer to be the guardian of your children and eliminates legal battles. While you can’t “will” your kids to someone, the judge will take that into heavy consideration when appointing the guardians.

Schedule an Annual Visit to Your Pediatrician

When your child was a baby, the doctor visits were laid out pretty clearly. But as they get a little older parents often wait until something is wrong to take their child to the doctor. An annual physical is the best way to keep track of your child’s health and catch any problems as soon as possible.

While there make sure to:

  • Ask about vaccinations and/or booster shots and make sure the child is up-to-date
  • Get advice on building healthy habits
  • Make sure growth and development is on track
  • Run tests for vision, hearing and speech
  • Check a blood sample for blood count, sugar level and cholesterol level

A Few More Child Protection Plan To-Dos

  • Protect their identity from thieves
  • Practice fire safety drills
  • Keep safety equipment like bicycle helmets and knee pads on hand
  • Know your neighbors – check the registered sex offender registry regularly

Now that your child protection plan is in place you’ve taken a huge step towards ensuring your children’s health, well being and financial security are protected. But as your children grow and life changes the plan will need to as well. One of the most important parts of any child protection plan is revisiting it annually to make sure everything is up-to-date and in order.

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Original Source: http://www.mybiginsurance.com/life-insurance-blog/make-life-insurance-part-child-protection-plan