Monday, June 17, 2013

Family Financial Care

I have been writing a lot about planning financially for your family's future. It has been interesting to think about whether there is anything that I should be doing for my family.

I am aware that I do not have a will and that I really should have one to make sure that the children inherit everything. I am also aware that I do not have power of attorney and so I should set this up as well, just in case it is needed.

I have also been wondering about life insurance. I do not normally think that it is worthwhile, but if me and my husband died before the children were old enough to earn money, then they would need money for their keep. We have insurance that would pay off the mortgage and so if the house was sold they would have that money, which would be around £100,000 each. That would probably be enough to keep them going but it is always good to have more.

1 comment:

Robert Gill said...

Having enough life insurance to pay the mortgage off is admirable, however, if you one of you died, can you honestly get by on one income?

If you both died, it's not as if the your personal representatives just sell a property, if you die without a will it could take months to sort out your estate (did I mention that without a will the court will decide who looks after them) and it could take even longer to sell the property.

You should be thinking about enough life insurance to repay the mortgage, plus an extra amount to replace the lost income, this could be in the form of a lump sum that could be invested and drawn on for income or a family income benefit policy.

Use of a will and trusts can ensure that your assets are paid promptly and to the people you want to have looking after things when you are gone.

It's good that you are thinking about power of attorney for you both, everyone needs it, however, if you were seriously incapacitated how would your family get by? You should have a look at some form of income protection and critical illness cover too.