There are many things’ parents wish for their children before they die. Raising them in a loving home, offering them a secure future, and having financial stability that can protect and benefit their child are just a few.
While there are things that you can do to help give you peace of mind, it is also important to plan for a future where you may not be around to support them. Having a set financial plan and safety measures in place to help take care of your children while they are minors can give you peace of mind. Here are a few things to consider making sure that your child will be taken care of even if you die.
Relying on relatives is not the answer
Having a strong support system in the form of your family shouldn't be taken for granted. However, it is vital to have a plan beyond relying on relatives to take in your children. There have been cases where children are often passed from one relative to another due to lack of preparation or the financial ability to take care of them. Speaking to a relative or friends you trust to take care of your children is an important conversation to have, but it is also crucial to have financial safety nets in place to make it easier for your loved ones to take care of your children.
Have a last will and testament in place
While we may not know what awaits us after death or when it will happen, planning for such things is crucial. A golden rule is to have a will in place, as soon as your child is born, which can be updated as you see fit. Having a will offers peace of mind knowing that your child will be taken care of. It also means that you will be able to choose a guardian for them along with informing your selected guardian about any investments or policies they can claim from to help your child(ren) in the future. Furthermore, it can prevent situations where your children are passed from one relative to another with no security in place.
Protect them financially through life cover
It may be heart breaking imagining a future where you are not around to watch your child(ren) grow and thrive in the world, but this could be worse when there are no safety nets in place. One of the most affordable ways in which South African parents can start the process of building a financial safety net is by having life cover. You can be covered for an amount starting at R500 000 - R10 million, depending on your insurer, for as little as R149* or more.
Life insurance policies can give you and your family peace of mind knowing that as they grow, their needs will be met for things such as daily living expenses, medical bills right up to covering school fees. Having a legal will in place will also help you set a time frame in which you would like them to receive your policy payout or how you would like it to be used. Protecting your child begins with the small steps you decide to take today.
