Education needs to be supported by parents from a student’s first day in a classroom through college. But funding options for educating children vary widely from one family to the next.
A public school education without higher education after tends to be fairly reasonable as far as cost. But private school, professional and university classes can be costly. Without some savings plan, families are left with student loans to pay back which can create a real struggle.
As suggested by McGill’s Life Insurance, this needs to be discussed when beginning a family because although your children may not go on to college for one reason or another, it still may be your parental educational goals to build that groundwork if they do.
Many families decide on paying for a bachelor’s degree, four years of college, but graduate degrees and beyond are the child’s responsibility. Planning horizons for education is generally 20 years, so a term policy is your best bet. Choosing the appropriate inflation factor is key in figuring your cost.
What about children who have special needs and are permanently disabled?
This is a very individual decision depending on what the child needs, but it can be a lifelong situation. It is important to talk with a financial planner that offers the best results.
What about the surviving spouse? Does he or she have the education to continue supporting the family? For example, if the spouse is a semi-retired teacher, does she have the skills to get back into the educational field?
Teaching licenses that expire and other requirements are quite costly. They may need training for a less demanding field, depending on their family obligations. Can the surviving spouse make ends meet on their own?
These are important considerations that need to be understood early on and each situation must be evaluated on an individual basis.
Want to learn more about life insurance? Read our article The Most Frequently Asked Life Insurance Questions.