There are several options out there with varying degrees of coverage. For me I’m going to get some once I’ve got two kids and it will be a term life insurance policy, which carries a lower monthly premium and covers you for a shorter period of time. What is nice about term versus whole life insurance is that it covers for the period of time you want to be covered, and for me I’m going to do it to cover my wife and kids till they are out of the house.
There are several things you’ll want to look into as far as who you name your beneficiary and its tax implications. Some people may have large estates that they’ll pass on to their kids, but those kids might be too young to handle a large inheritance and so there may be stipulations on when the child would receive their inheritance, i.e. they won’t get access to the trust fund until they’re 18 or 21.
Another timing issue that is linked with naming your kids as your beneficiary is that they’d get something once I passed, while my wife would still handle/inherit our investments and their income. In a book I read it talked about how sometimes kids will constantly pester their mother once the father passes saying that she is spending more than she should. I think I might look into that option so as to avoid any conflict with how my own wife spends OUR money. The kids can fight (but hopefully not) over how to deal with the estate once we both pass on.
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