Bet Your Life: The Basics Of Life Insurance

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Bet Your Life: The Basics Of Life Insurance

When I applied for my first life insurance policy, all of the talk about benefit amounts, revenue generation, investments, and beneficiaries had me somewhat confused. I remember wishing that I had known more about what it all meant before I applied. Once I found the policy I wanted, I decided to create a website that helped other people understand the fundamentals of life insurance and what all of those legal terms mean. I hope that this information helps you to choose the policy that's right for you with a clear understanding of the information you need to provide as part of the process.

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The Second Weaning -- Helping Your Children To Become Financially Independent

So your children have just graduated from college and will soon be starting their first "real" jobs. Until now, you've paid a majority of their bills, such as their car-related payments and their cell phone, but you're ready to change that. Of course, your children may not be able to take on all of their bills at once, but the following are a few ways you can help wean them from your financial bosom while also helping them to adjust to their new reality.

Car Insurance

If your child is planning to move out of your home soon, they will need to get their own automobile policy. To get the best possible rate, you and your child should:

  • Obtain estimates from several auto insurance companies. Rates can vary greatly from one company to another.
  • Consider dropping collision and comprehensive coverage -- if they own an older vehicle. This may not be a good idea if they own a late-model or expensive automobile. And if the car is still being financed or is being leased, your child will usually be required to carry collision and comprehensive insurance. 
  • Consider a policy with a high deductible. But your child needs to understand that if they do get in an accident, they will be responsible for paying the cost of repairs up to that amount. In addition, financed and leased vehicles may require a certain deductible amount. 

Cell Phone

According to News to Live By, two out of every five parents still pay for the cell phones of their adult children (ages 18 to 35 years). If you would prefer to be one of the 3/5ths that doesn't pay for their children's phones, encourage them to seek out their own plan once their agreement period has ended.

Unfortunately, you may have to pay a substantial early termination fee if your child leaves your plan before their contract has ended.

Rent Payments While Living at Home

Some financial experts recommend that you charge your child rent if they choose to live at home so that they can learn how to budget their income. So how much should you ask your child to pay? Forbes recommends that you charge no more than ten percent of your child's take-home, and some parents actually save that money to give back to their children once they decide to find a place of their own.

While your children would probably rather spend their money on a night out on the town than on their own car insurance, it's important that they learn to be financially independent as soon as possible. If you need more help, try contacting a company like Thomas A. Nolfi Inc. to learn more about auto insurance and what will help your child.


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