<p>I was just on the Financial aid forum and a student had the unfortunate loss of a parent this year. The parents had always promised to assist financially with schools but the loss obviously changes that. Mom is now the sole bread winner and makes about $45k per year.</p>
<p>Please remember to purchase low cost life insurance to protect your family. No I do not sell life insurance.</p>
<p>Here is the post-One of my parents passed away this summer, which dropped our family income to 45k (Mom’s income).
My brother, the only other member of the family, is a freshman at UW-Madison.</p>
<p>When I was younger, my parents would always tell me that if I could get into any college, they would find a way pay for it. Now that circumstances have changed, I don’t think my mom will be able to contribute a lot towards college, especially with another dependent college student.</p>
<p>This student still has an excellent in state option Wisconsin but the loss of a spouse/ parent is devastating enough without financial burden being added.</p>
<p>And while we’re on the subject, reassess your long term disability insurance…and no, I also do not sell insurance…just have seen too many families caught unprepared.</p>
<p>This is a great reminder, tom. Something most of us don’t like to think or talk about often but is so important. Sometimes life slaps us in the face with a wake up call. I received such a wake up after having emergency surgery last year and immediately thereafter updated our life insurance.</p>
<p>A woman I greatly admired passed away from cancer when she had very young children (I believe they were 3 and 8 or so). She was very far-sighted and DID provide very well for her surviving widower and also trust funds for both children with her life insurance. The husband was able to retired as a electrician at a very young age (30s/40s) to take care of the kids & know that they could afford the college of their choice.</p>
<p>We all miss the wonderful woman but it is a great relief for everyone that their college fund is very healthy.</p>
<p>While we’re on the subject, make your children the beneficiaries of your life insurance.</p>
<p>One of my mentees-- a graduate student who’s about age 23 – unexpectedly lost both of her parents her freshman year in college. Her mother died of an aneurysm fall of freshman year; her dad died in his sleep of a heart attack spring of her freshman year. Both parents had remarried and had left everything to their spouses, who gave my mentee nothing. Zero. Nada. Up until her parents’ unexpected deaths, my mentee had gotten along fine with her stepparents. </p>
<p>To finish undergrad, she ended up taking huge loans and working virtually full time. She’s working on her masters and is assuming even more debt. She also has chronic medical problems. </p>
<p>So… keep the unexpected in mind and make provisions for your children.</p>
<p>I know this is a parents forum but I saw the thread so I thought I would add my input. </p>
<p>I’m a high school senior and in 2008 my mom was diagnosed with stage IV lung cancer, never smoked a day in her life. Now as the days are winding down, I can concentrate more on spending time with her because of her life insurance plan. I have 3 siblings and with my mom’s life insurance, we all have a trust for college or whatever else is thrown our way. My parents are divorced and my father is comfortable financially, but it is still comforting to know I can worry only about my mom and not money problems.</p>
<p>I highly recommend that all parents invest in life insurance.</p>
<p>This is excellent advice. Not only does my husband’s company have insurance on him (which pays me and the company if he should suddenly die) he also has a pretty healthy personal life insurance policy. He won’t tell me for how much because, as he teases me, I might just choose to kill him. However, I just want to point out that even though I am a SAHM, I too have insurance. If I would die my H would have to not only bury/cremate me, but he’d also have to hire quite a few people to fill my shoes. Granted, as the nest empties I am not as critical as I used to be, but the fact remains I am currently the COO of these digs.</p>
<p>My father died very suddenly. He had been a little bit of a jerk during my parents divorce but when he died everyone thought it odd that he had kept my Mother as beneficiary of his life insurance. His new wife got everything else, (and pretty much did exactly what the beforementioned step parents did in keeping or selling everything) but there was something unmistakable about this very diligent man never changing that policy in at least 10 years and leaving it to my mom.</p>
<p>It is usually easier to get life insurance when you are younger and healthier. So get it now (if you haven’t done so already). A friend didn’t buy when he was young and now isn’t eligible due to a medical condition. I also recommend disability insurance.</p>
<p>Tom- thanks for reminding us all. Not fun to think about, but so important.</p>
<p>All good advice. The mom should also contact financial aid office of brother and see if her contribution for him will be re-calculated as well as providing this info to schools where this young woman will apply.</p>
<p>In a way, because my DH was aware of his heart issues when he was young, we have always made financial plans with worst case scenarios in mind. Our DD’s would be better off with us deceased, but don’t tell them that!</p>
<p>I would add that on top of life insurance that is offered at work, purchase an independent life insurance policy( that is not related to work) because people do change jobs.</p>
<p>^^^yes, yes, yes. Got an independent policy when I left my job after S1 was born. Doubled the face value when I got pregnant with S2 at age 30 and got an automatic increase rider for the first 15 years of the policy. Was diagnosed with cancer when the kids were 10 & 11. The policy is enough to for college of for both of them, plus have some left over, should anything happen to me. I’ve been working FT, PT and on unpaid medical leave in the 18 years since I got that policy, but you can bet your bottom $$ that policy gets paid every month.</p>
<p>DH also has a term life policy separate from work which would cover college and provide income to supplement my PT earnings.</p>
<p>Yes, yes, yes. I work in a life insurance office. I have seen many benefit checks go out to people who have purchased policies through our office, no one ever complains it is too much. I have a pretty large amount of coverage on me, my DH, and my kids- for the reason mentioned above, to protect their insurability. </p>
<p>I have seen people qualify for the best rates on the market one year and the next be uninsurable. It is also not uncommon to talk with 50 somethings who have suffered a lay off and also had a stent or angioplasty, all of a sudden instead of preferred best rates, they are rated and paying quadruple the premiums.</p>
<p>Term coverage is cheap and if you buy a convertible policy you can (with no health questions asked) convert all or a portion of the term plan to a lifetime plan. So, if you bought a $1MM term plan level for 20 years and then are diagnosed with breast cancer, but survive it, you will be uninsurable for a long time and rated thereafter. If you already have preferred rates on that term plan, you can, on your signature alone, convert some to lifetime guaranteed coverage. This is a valuable feature that applies to a small group of people, but it is great for those who need it. If you do have term coverage and do have a health hiccup check into the convertibility so you know what your choices are.</p>
<p>For a SAHM/SAHD most companies will still offer a policy as large as that owned by the working parent, if the SAHM mom died, it would be nice for Dad to be able to take time off or a reduced work schedule to help the kids adjust!</p>
However, I just want to point out that even though I am a SAHM, I too have insurance. If I would die my H would have to not only bury/cremate me, but he’d also have to hire quite a few people to fill my shoes. Granted, as the nest empties I am not as critical as I used to be, but the fact remains I am currently the COO of these digs.</p>