How to protect your child from the financial impact of a parents death
As with most parents, your children are probably the most precious thing in your life. Imagining being without them or them being without you is almost unthinkable. However, not planning for the unexpected could lead to your children suffering more than is necessary. In this article, we explore how your family’s finances could be significantly affected if you or your partner were to die prematurely and how you can protect your child and family from potential financial hardship.
Who will care for your children?
When you think of your own mortality, you probably imagine your partner being alive to take over the care. But what if your partner is not around, maybe you are separated from your partner and do not wish them to take care of your child. Are your family able to take over the responsibility of the children or do you need to consider an alternative arrangement with friends for example? It is also worth considering how will they financially provide for your child?
It is better to consider what arrangements you would like to make for your children now than leave it to chance that the right decision will be made after your death. Have an open discussion about the possibilities with those involved so that friends, family and your partner are aware of your wishes.
Making a will is a good first stepping stone in making sure your family are looked after.
What income will the household have?
If you are the primary earner for the family, how will they continue to cover the expense of life after you are gone? Will the surviving parent have to find another job and be away from the children more often? At a time when your kids may need the reassurance of a parental figure, they could find themselves with a childminder instead as money worries take priority.
There are many options, such as income protection and life insurance, that you can choose to provide your family with an income in the event of your death. You can find out more about protection planning here.
How will their education be affected?
A sudden change in the household finances can mean that changes to your children’s education may have to be made. This may be due to being forced to move to a cheaper area and therefore changing schools, or if your children are privately schooled, your family may no longer be able to pay the fees, and so your child may return to state education.
Even if the unexpected does not happen, you may still want to plan how you are going to meet the costs of your children’s education. It might be just budgeting for school trips and yearly uniforms or investing money to cover future university fees.
Unable to access support
Your child and family may need emotional and practical support. Making sure your loved ones have the money to access services such as counselling or even more hands-on help like a cleaner or gardener to make their lives easier can help to give you peace of mind.
Getting professional advice
There are many options when looking for ways to protect your family and the lifestyle you live. To ensure that you have the correct protection for your circumstances, consider seeking independent financial advice. A Lifestyle Financial Planner will take the time to get to know you and what is essential to your family. They can support you in understanding what you might need and putting a plan in place so that you can feel reassured that your children will have a bright financial future.
Life Centred Planning Ltd are passionate about helping you achieve the best quality of life you can with the resources you have available. Based in Battle, East Sussex, we specialise in life centred planning and offer a complimentary 1 hour consultation, so contact us today to find out how we can help you create a brighter future.