Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

What No Mother With Young Children Can Afford to Leave Off Her Shopping List

October 27, 2016 at 12:00 AM

I was shopping at Costco recently, enjoying the great value as always. While waiting in line to check out I got to chatting with a few young mothers-with babies in tow-who were waiting as well. Me being me I was curious if these women who obviously knew a thing or two about shopping had bought protection for their family.

Not one had life insurance. They loved those babies more than anything, yet none had purchased the single best way to protect the kids.

The crazy thing is that purchasing life insurance is easy—and cheap! All you have to do is head over to an online site such as SelectQuote or Accuquote and shop for a term insurance policy. If you have young kids, buy a 20-year policy; so no matter what happens to you, there will be resources to raise (and educate) the kids. I recommend you ask for a 20-year level term. The “level” means your premium will never change. 

And you want to talk deals? A 30-year old woman in good health might have a monthly premium of just $20 or so for a policy with a $500,000 death benefit. For a 35-year old the cost rises to a whopping $25 or so a month. A forty year old will probably pay less than $35 a month.

C’mon Moms. (And Dads). You can’t tell me that less than one dollar a day is too much to ensure your family is safe no matter what.

Once you’re ready to purchase life insurance an important step is to name a beneficiary for the policy. Please know the absolute worst thing you can do is name a minor child as the beneficiary. Children under the age of 18 are not allowed to directly inherit any money. If you leave money to a minor, your beneficiaries will be hauled into a court, where a judge will be appointed to oversee how the money is spent. That’s going to be a huge hassle.

The better move is to create a living revocable trust, and name the trust as the beneficiary of the life insurance policy.

I know a trust sounds like some fancy (and expensive) document for the super rich. You couldn’t be more wrong. A trust is a simple and easy way to protect your family. While you are alive, you are in control of the trust. Your official title will be Trustee of your trust. But you will also appoint someone to take over control of the trust when you die. If you were to die prematurely, the life insurance would be paid to the trust, and then whomever you appointed your successor trustee would then use that money exactly as you have spelled out in the trust, for the benefit of your minor children.

Tag Cloud

switch to spouse coveragehigher monthly paymenttitle insurancewrite new goaltake actionhigh premiumsFICO Scorebest interest of investornegotiate points with bank or sellerAlarm ClockBankface your financial fearis it necessaryreal estate mistakesinsurancecharges on credit cardInfluentialsstudentultimate compounding giftfinancial goal phrasesocial security not going brokecredit managementmortgage disclosurefraudulent returnage appropriate goalsbe good exampleGiftscostly insurance mistakecar buying mistakesCommencementWarner Bros Television Grouptaxesfederal student loan deferment Credit Card Interest RateBeautyraising mortgage rates annual cost of living adjustmentsocial security never insolventRevocable Living Trustsuitabletax refund fraudbreakdown projected monthly housing costbuying car 2016pay 100% cashhighest possible benefitFinal GoodbyeLTCFICO credit score credit card mortgagedeath benefit needs for familyis it necessary?three year car loanautomate student loan paymentsdental insurance Urbana-Champaignalways use all paid time offis it true? standard ratenear historic lowstraditional vs roth 401(k)max employee matchIRA contribution gifted moneydebtprotect your familylong-term care file asapLong Term Care Insurance require chore in exchange for allowancenot enough life insuranceno apologyBankruptcyForbes Top 10interest on student loansapproved medical 100% tax-freechildren's bookUniversity of Floridahealthy retirement blood pressureBill and PennyCommunication Skills insurance mistakeStock Investmentsdon't charge a pennyonly refinance if it payspay down student loan debtverify retirement plan with HR or plan sponsornon conventional routeage appropriate chorepaid vacationstretch out haircut appointmentseliminate credit card debtstaycationMortgage Credit Availability IndexCiti Simplicity Card workaholicpurely financial standpointdon't extend mortgage interest capitalizationlife insurancesuccessno waiting periodlow mileage discountkid borrow firstdental savings plangay marriage ban end Florida loan big picture 40% toward financial goalHoliday SeasonPhyllis Shelton expert long-term careoverspend on nights outcontribution automatic withdraw to savings graduationmultiple lendersdoctors in networkSuze Orman spouse Kathy TravisHeartroth iraPost-Divorceno fee transfer19 years cash flow problemEric Dodge Forbescollege studentclosing costs 2% of loanvalentines daypowerfulprescription tierpeace of mindstudent loan repayment estimatordepreciating asset percentage men widowed 75-84cut monthly cable billcommissionsheartacheFederal Stafford loanMother10% donate to charitycompare provider pricingraising interest ratesSwap Older Annuities or Life Insurance Veterinary School50 over 50pay credit debt ASAPsmall changes four steps to retirement savings pay interest while in schoolSuze changed my lifekids schedule paymentshealthy gumsdo not pay allowance for good behaviorcan you afford itHDHP'shealthy retirement weightfamily save at least $100 monthlybad decisionssame sex marriage band end Floridamax employer matched 401(k) contributionHDHP Money Marketdoctor no longer in networkmarriage financial responsibilitymoney-aware childCOLApush yourself to save more for retirementsocial securityUniversity of Illinoisemployer funding HSAteach your child good money habitscar loandon't spend Long Term Care shoppingstudent loan debtsecure creditmortgagereal estate marketfinancial argumentsdream schoolMost Influential Celebrities Listshop online guaranteed level term policyOverspendingresponsible with moneyfocus on new truth Foreclosureaffordabilitycouple financesincrease retirement savings3 savings buckets borrowing plan Mass MutualRichrising home pricesjuggle multiple financial goalsAARPemployer offered life insurancemanage student loanscollege graduatehome related tax break bonus public service loan forgiveness programSave Us MoneyHoliday Shoppingget health insurance2016 adjust withholdingexercise reguarlyincreased auto insurance premium740 credit scoreswitch to roth 401(k)LTCi ASAPphysical healthdangerous retirement planFederal PLUS loandon't derail retirement savingsdebit cardretirement plantax ID theftpublic service career student loan repayment no tax on withdrawlsdon't defer interest paymentsconfidentclosing disclosureMust Have Documents20 year level term Suze Orman ScholarshipGay RightsHDHP's are good for youAARP Social security calculator3 step financial road mapSuze Orman's Money Warsstay positiveworst financial mistakeFederal Funds Ratelower mortgage interestPay Off Debt Before Retirementavoid burn outwomen long term carewomen outlive menloan is giftLifestylemental healthverify wellness screening and programsbudgetStudent Debt Crisismarriage inequalityhome loan credit score below 740 teach importance of helping othersprovider of financial supportbalance transfer Fiscal ResponsibilityNew York Lifefull retirement ageno interesthome buying mistakesshorter payback periodVital Documentschildren under 18emergency fund Baby Boomerskeep a scheduleJose Rodriguezno life insurance financially irresponsiblespecial saving accountwomen live longerstudent loan repaymentlearn good financial choicesStaffords this year have a fixed 6.8% interest ratelive below your meansvalue moneyARM Caution401(k) Contributionsplanschedule vacationretirementLoveback-to-school budgetreferrals escrowstore credit cardsproperty taxrefinancelife insurance name trust as beneficiarypay down car loanterm life insuranceFICO at least 720unexpected expenseno private loansInfluential Celebritysecured cardlowest cost fund optiongrandparent IRA contribution Civil RightsNew american Dream loan necessityopen enrollment review financial fearsOne Wallet At A Timelow-cost index mutual fundearn more on savingsincrease emergency savingsMarlo Thomasprotect dependent healthy teethgift grandchild IRA contributioncontribute household expenses Exhibitionterm insuranceHigh FICO Score = Better Rateprofessional advisorgift not loanAshley Springerbest interest ratesSchool of Social WorkSelectQuote.comhealthy aging community bankreduce monthly paymentretirment savingspresident Obamahigh FICO scoremortgage brokermake saving a pleasureHow To Build Creditbe kind to yourselfcomparison shoppingFinancial Awareness Video Festivalraise your deductiblehigh deductible health care planRetirement Income2015 financial roadmapcredit cardhome buying seasonmoney vowsdon't buy wantsfiduciaryrequired disclosureSuze is my biggest mentoranticipated salary8 month emergency fundclosing feesCD'sPrime Rate Increase30 year mortgage savingswould you decline a bonuswaive home inspection bidonly offered while employed Moneyat worst still pay 75% benefitbill paying prioritiesengaged in financesconsider roth 401(k)Roth 401(k)lower interest rateInterestSuze OrmanDeath BenefitSandy Hook PromiseRetirement Savingshigher insurance deductiblebuy home you can affordFinancial Gift Cliffpositiveidentity theftincrease retirement contribution rateGoodbyerolloverdo you need life insurancerefundAccuQuote.comovercome financial fearscompare monthly expensesNewtownshort term goal retain separate credit cardsdon't blow tax refund2015 record year car salesautomatic paymentone credit card2017 Taxesinsurance yearly reviewConventional loan PMIholiday spendingChanging LivesFederal Reserveresponsiblepay off debt401Kdon't cover cosmetic dentistryadvice for college graduateshigh credit score discountcar leasingno late fee 20% down paymentlong-term care premiumsTeachfocus on needsquick closingco-sign school Inflation Benefitcredit reportiffy incomepremiumfinancial independencehome insuranceGay Couplesdeath benefit 20 to 25 times annual incomebecome member too expensive schoolpaying for collegeMinor Children community collegepay more than minimumdental discount planspring summer no negativitylong term careno retirement funds for down paymentallowancehome budget after tax costis it kind?ritual schedulepaid in fullno splurge Giftsave moneypay high rate off firstmonthly benefit better loan rates20 to 25 times annual incomeFinancial Power of Attorneypermanent life insurancelet them have 50% controlFinancial Systemeight month living expense alternative FICO scorecut monthly cellular billFinancial Educatorzero rate transfer dealsmaintain standard of livingcredit utilization ratefinancial aidlong term goalFHA loan feesspeak new goalknow before you oweEmployer Matched Contributionadd teenWashingtonStudent LoanCPI-WCredit Card Rate Increaseget the most out of social security Invest for savings growthRevocable Trustretirement accounts3 bucket approachget over life insurance phobiawomen longer life spanAuto Savings US Tax Codedon't use allowance as bribehealthy youCredit scoreget credit cardoverspend on giftsFundsleave a legacycalculate dependents annual income needsCNBC!00% tuition paidstandard deduction borrow each year, capitalization is going to pile up same-sex marriageallowance taskFinancial CliffFRA4 Must Have Documents HDHP/HSAEmergency Savingsdebt freelower premiumpercentage of women widowed 75-84SpendingFinancial Awarenesspreexisting condition not coveredPBS Special2016 adjust estimated tax6 month waiting periodinitial tax break LTC shoppingAmericans don't use all paid vacation timedon't ignore open enrollmentjanuary billsLegal GuardianFree Debt Eliminatorpoint cost offset by savingsAdequate Auto and Home Insurancehigh down paymentHDHP's are not badhousing marketTelepicturesYoung Adult wives should be involved in retirementitemized deduction3% debt transferred no private loanFixed Rate MortgageWall Streetprotect loved ones 8 month safety netidentity fraudstrained relationshipEasy Life Insurance accelerate dental workteenscost of capitalization calculatorCory BookerFinancialloan no longer than 36monthslower overall drug cost8 Rulesdon't do five year car loanletter to suzelower rateLong Term Care premiumsfile taxes quicklyadjust allocations meet monthly home ownershipderailed planWillback door Roth IRAbuying a carSatisfyingfinancial concernstudent loan repayment planreduce interest ratesave bad retirement planningCombo Insurance Productslousy investmentrent vs buycommitMoney-SavingHigh Credit Scoreraise deductiblesmax benefit coveredDurable Power of Attorney for Health Care20% equityraise insurance deductiblesocial workHSA tax savingslow down paymentCollege of Veterinary MedicinePersonal Financeno sneaking in feesburn outSandy Hook Elementary Schoolrepay student loansuniversal college accessoverspend on dining outgift up to 14,000grandchild summer job IRA contributionaffordable premiummortgage interest tax deductionenjoy saving loved ones dependent on incomeincentives for health care wellness screeningcnbc alarm clockFinancial Solutions For Youconfident of solutionunder 18 financial giftbetter termsone annual feeETF'sSelfishyours, mine & oursbig results ignore 6 month grace period teens and moneydear suzeearn allowancenew caradult children20% down payment avoid feesPrime Rate Rise 2015create new truthemotional stakesreduce withholdingbetter loan dealsbe true to yourselfemergency fund savingssavings pleasureAmy Lacyetmonthly dental insurance premiumsummer job match income mobile appprotect and provide for minor child low credit scoreGraceorigination feesStudent DebtsidelinedARM15-year refinance dealtelevision hostbuy down Financial AdviceSuze approvedfinancing car buy homecredit unioncostly legal 15 year mortgagereplace permanent life insurance with termThe Suze Orman Showdangerous money seasonhome buying budgetnot gender specific setup automatic savings withdraw10 year repayment plan Holidaybest loan deal unsubsidized Stafford loan

View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel