3 Life Insurance Coverage Tips for Your Blended Family

According to itsovereasy.com, divorce rates in America have risen to between 40% and 50%, helping to make blended families more and more common. Blended families can often be complicated, making the conversation around life insurance and the financial and emotional issues that come with that decision uncomfortable. But there are many ways that life insurance can help you deal with the unique circumstances of blended families. Here are a few things to keep in mind while making insurance plans for your blended family.

Use Life Insurance to Protect Yourself from Loss of Income

Should something happen to your current spouse, you can use life insurance to ensure you aren't left without any income. What could make this more helpful for a blended family is that you won't have to worry about the risk of giving up other assets that you might want to pass down to children from a previous marriage.

Make Sure Your Life Insurance Plan Covers Your Final Expenses

Blended family or not, the last thing you want to do is leave your loved ones with expenses after you're gone. Even a small life insurance policy can help pay for final expenses such as funeral costs, estate taxes, or lingering medical fees. Your insurance can also help cover financial obligations resulting from previous relationships, helping to ensure that the surviving spouse won't be held responsible for payments to someone else's children or former spouse.

Be Mindful of Who You Name as Your Beneficiary

Be cautious of who you name as your beneficiary in your life insurance plan and revisit this decision often. It's important to remember that stepchildren are not heirs to your estate by law, so if you do choose to have your plan provide for them, you'll need to designate them with your insurance provider properly.

No matter your family dynamic, life insurance can be complicated. To learn more about how life insurance can be made simple, contact the experts at Insurance Lounge by giving us a call at 1 (800) 211-8600 or visiting one of our four storefronts throughout Oregon.