Yesterday I looked at the idea of insurance for the housewife or stay at home mom, but there are various other kinds of insurance you might need to consider. Insurance against sickness, accident or loss of income for the main worker in the partnership, house insurance, house contents insurance and car insurance are others.
Sometimes with the birth of a child, people even take out an insurance policy that will mature and come to their child when they reach a certain age.This is something my parents did and Mick’s parents did too. Unfortunately they were policies that were not going to reach maturity until we were retirement age. But sometimes if you are in financial hardship you can borrow against that money which will come to you then.
You might even decide to cash it in, figuring the money is more important at an earlier age like when you are trying to save for a house or something along those lines. Mick and I chose to do that at one time when money was extremely tight and we had no other option of extra money coming in. Since the policy had been paid in to since babyhood, it was still worth it for us to cash it in then. Admittedly, it wasn’t a huge amount and certainly not the value had we taken it though to maturity, but it was more use at that stage of our lives than later on. What’s more, although it wasn’t a huge amount it was enough to get us out of a financial hole and we never regretted cashing it in.
Again it is something you will, as a couple, need to think about and discuss. Work out what you can afford, what type of insurance you need and what you may be able to do without until finances improve. You might want to consider taking out an insurance policy for your child. You might opt for one that matures when they are 25 or something like that rather than one that matures at retirement age.
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