How do I protect my child maintenance payments?
Now that you have agreed and are in receipt of regular child maintenance payments, the money forms part of your monthly budget. How would you manage if those payments were to suddenly stop should the worst happen?
The impact could be financially devastating especially if the maintenance payments form a large part of your income stream.
One way to protect these payments and provide a safety net is for the payee to consider an insurance policy which would pay out a regular tax-free income for a set period of time. This could perhaps be until the child/ren turn 18, or when they finish education or beyond.
Family Income Benefit is an economical option and offers an easy way for a parent to provide for their family with an income rather than a lump sum should they die.
It can also be a good solution for single parents who are renting as if they were to die, it would provide the child’s guardian with a regular income to cover the day-to-day expenses such as food, clothes and school supplies. This also extends to full time carers of their spouse or partner as it could provide a regular income to pay for nurse home visits and utility bills.
If you would like any further help or advice, please get in touch with a member of our team.