Florida Health Insurance Terms:
"What are Age Limits?"
Age Limits: The ages above or below which an insurer will not issue and insurance policy or continue a policy presently in force.
If you're reasonably young and reasonably healthy, consider purchasing a moderate amount of term insurance, which is the cheapest form of life insurance. Younger parents can obtain a significant amount of coverage for relatively low cost, for the obvious reason that statistically they are unlikely to die soon, so the risk to the insurance company is low. It will provide quick cash for your children if necessary, without draining your bank account now.
Leaving Life Insurance Benefits to Minor Children
If you decide to purchase life insurance for the benefit of your children, you need to arrange some legal means for the proceeds to be managed and supervised by a competent adult. If you don't, and your children are not legal adults when you die, the court will appoint a property guardian for the children. The process necessitates attorneys' fees, court proceedings and court supervision of life insurance benefits--costs and hassles that surely won't help your kids. There are several ways to prevent this:
--You may not want to name minors as beneficiaries of your life insurance policy. Instead, name a trusted adult beneficiary who will use the money for the children's benefit. If you are confident that this adult will not waver from his or her duty, even years down the line, this might be the easiest option.
--You can name your children as your life insurance policy beneficiaries and also name an adult custodian under your state's Uniform Transfers to Minors Act. Most insurance companies permit this and have forms for it. If you want the proceeds to go to more than one child, you'll need to specify the percentage each one receives.
--If you have a living trust, you can name the trustee as the beneficiary of the life insurance policy. In the trust document, name the minor children as beneficiaries of any money the trust receives from the insurance policy. Also establish within the trust a method to impose adult management over the proceeds, which can be either a child's trust or a Uniform Transfers to Minors Act (UTMA) custodianship. You'll need to give a copy of your living trust to the insurance company.
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