Important issues when you have children
✔ Insurance cover
✔ Beneficiary designation
Have you secured your child financially if you fall seriously ill?
A pension plan allows you to stretch out a financial safety net under your family. A pension plan generally includes insurance plans that provide cover is you fall ill or get seriously injured, and, when you have children, it is particularly important to check that you and your family have the right coverage. While your children live at home, you will often need a stronger financial safety net if you fall ill or, at worst, pass away.
Go through the Insurance Guide at My PFA
Have you considered taking out PFA Children’s Pension?
A children’s pension provides regular payouts to your child/children if you pass away before retirement, and before the child/children turn(s) 18, 21 or 24. Until the child turns 18, the money will be paid out to the other parent or a legal guardian – or be held in trust until the child turns 18. After turning 18, the money will be paid out directly to the child. Children’s pension can serve as a help to provide for your child and as financial security during a difficult time. The payouts will be considered personal income for the child, so we recommend that you keep the amount within the limit of the child's tax exemption card.
Read more about children’s pension
Have you designated the right beneficiaries?
A beneficiary designation is an agreement on who PFA should pay out the money from your pension plan to in the event of your death. Often, you will be able to choose who is to inherit the money or part of it, and, if you have children, it is especially important that you check that the right people are secured.
Read about beneficiaries
Who will inherit your money?
It is a good idea to plan who is to inherit that part of your wealth that is not linked to your pension plan. The key is to secure your child in the best way possible if you should pass away. When you are married, your spouse will generally inherit 50 % of your wealth while the other half will be distributed between your children. If you or your spouse has children from a past relationship, if you are divorced or if you have a domestic partner, you may prefer another distribution. In any case, it is always a good idea to have a will drawn up.
Read about will and inheritance