While you might not be together romantically, raising children together leaves Co Parents financially connected in many ways — whether you want to acknowledge that or not.
The term Co Parenting was traditionally only used to describe a situation where a parent had split from their previous partner following a separation or divorce, but who were still actively involved in the lives of their shared children.
It's also a way to be actively involved in the life of a child along with other adults committed to helping you grow a happy child.
Whether you’re Co Parents by choice happily sharing parenting responsibilities, or Co Parents by circumstance post separation, having a life insurance policy on each of your lives, protects your child from the financial effect of losing one (or more) of their parents.
Having open and frank conversations about these realities of life we all face is just another part of putting the needs of a child first.
A life insurance policy is essentially designed to help protect the nominated beneficiary from the financial impact that losing a parent will bring.
Ultimately the loss of one parent will increase the financial responsibility of the surviving parent - and usually at a time when finances are already stretched.
Conversations about this essential part of life and parenting should always be about the benefit of the child in the long run.
Learn more about the risks families face when they lose an income-earning parent to unexpected death.
Download our free eGuide 31 Australian Families Lose a Parent Every Day.
Olivia has three kids to two separate fathers from past relationships and has been receiving child support for each of them ever since the relationships broke down. One of the kids has now been diagnosed with additional needs and requires more attention and care, so family budgets and free time can get out of balance quickly.
The answer - a life insurance policy on each of the children's Co Parent fathers.
In Australia, a life insurance policy can be owned and paid for by a person different from the Life Insured. For example, a policy can be owned by a parent and the life insured be their child or parent or even an employee who is considered a Key Person to a business.
In Australia, if you are the Policy Owner and paying the premiums for a Life Insurance policy, you have the right to nominate who is the policy beneficiary and make changes to the policy. The Policy Beneficiary is the person nominated and named in an insurance policy to receive a future life insurance payout.
When a life insurance policy is held in a super fund, it's fair to say the rules about who is allowed to be a nominated beneficiary, have not kept up with modern life. There are special rules about biologically related children under 18 that change once the child is over 18. The rules relating to stepchildren are even more confusing and may see a stepchild losing their right to inheritance once their stepparent dies.
Work with a professional adviser at Unusual Risks Insured who understands Co Parenting.
David separated amicably from his former partner last year who now has primary custody of his teenage daughter Sarah completing her private schooling. David's new partner has two infant twins who adore him and his time and finances for his new younger family are getting stretched looking after them all.
Both life insurance policies each name his daughter Sarah as the sole beneficiary of the policy. Of course, everyone hopes they will never need to make a claim, but now it's in place, they all benefit from the peace of mind this type of backup plan brings to all their families.
Take a proactive approach to your Co Parenting.
Although your Co Parent may already have their own life insurance policy in place naming a number of different beneficiaries, taking out a separate policy on them where you are the policy owner puts you in the driver's seat.
You know for sure the policy premiums are being paid, the beneficiaries cannot be changed without your approval and the peace of mind knowing the policy is accurate and up to date.
Purchasing a policy on your ex-spouse or partner requires their cooperation as they will need to answer the personal health and lifestyle questions during the application process.
This is when things can get complicated.
If your relationship with your ex is less than ideal, or they’re simply not invested in the welfare of their child, it might be difficult to convince them to complete the health and lifestyle questions that every life insurance policy requires.
The subject of who should pay for the premiums on a life insurance policy can also be problematic. Remember, the policy owner/payer gets to nominate the policy beneficiary.
As an independent third party, Unusual Risks Insured can send people applying for life insurance cover a confidential link to an online form so they can complete their own personal health questions confidentially, at a time convenient to themselves. This means we try and remove any face-to-face contact for them and maximise their privacy.
Unusual Risks Insured specialise in working with clients with hard to insure health or occupations, people with diverse backgrounds, family and relationship structures, and people with high privacy needs - Australia-wide.
We’re the experts at talking about what matters most.
Advice equality means our clients never have to prepare for a homophobic conversation, religious judgementalism, never have to be prepared to be ‘the constant educators’ and be forever ready to explain and defend the benefits of PrEP, that HIV is a chronic but now manageable condition or how Gay Dads and Lesbian Mums have different needs, that growing families takes time and ultimately some guys love guys and some girls love girls, that love knows no gender and that Love Makes a Family.
We get it, we love it, we defend it and we celebrate you.
Co Parenting, whether by choice or circumstances post separation is a part of Modern Australian Family Life.
Ultimately a Life Insurance policy alone is not the goal - it's a means to an end.
For a Co Parent, increased peace of mind and financial security may come in the form of a simple life insurance policy.
Young male P plate drivers? Young Tradies? Army Reserve personnel? Single mothers? No.
The Australian LGBTQI+ Community is one of the most underinsured and underserved markets with financial services.
This of course then leaves them and their families at greater vulnerability than their straight counterparts.
Yes, it makes perfect sense to think about life insurance today - especially today - because life still happens to us all, all the time, even during difficult times.
One of the dangers of living through difficult times (and the LGBTI Community is no stranger to surviving difficult times) is we can sometimes fixate on the biggest issue and ignore the most important issue - our life, love, and relationships continue regardless.
Our innate adaptability can lead many LGBTI couples to embrace wildly different financial goals, styles and circumstances in our partners.
It's a difficult time, and winter is coming.
But it won't always be.
And we all need to be ready for the Spring; to better understand what we can control now (and who we can take care of today), so we're all getting ready for a better tomorrow.
We're committed to serving the LGBTI community and its Allies, and we're here for you, all year round. Happy Mardi Gras!
What some people miss is that life insurance is really love insurance — by having sufficient life insurance, they're safeguarding the future of the ones they love.Drew Browne
When it comes to being single in the LGBTQI+ community, there's really no such thing as average.
And it's your single life, so live it your way.
When it comes to being partnered in the LGBTQI+ community, there's really no such thing as average.
There's no right or wrong way to live a purposeful life, just what works for you both.
When it comes to parenting in the LGBTQI+ community, there's really no such thing as average.
However you're doing it, Love makes a family.