My sister-in-law is on disability due to terminal cancer, among other health issues. She recieves a check monthly as does her 3 year old (she has full custody of the child). She is currently pregnant and isn't expected to make it through the pregnancy, they're going to do a c-section at 7.5 months which is mid-May. My mom is going to get custody of both kids when she passes away. She told us that when she dies, the check to her kids will increase and they will recieve one until they are 18. Is this true and is there any way we can find out how much money they will recieve monthly? One website we looked at, it said $13K a year for survivors benefits, but we weren't sure if that's an overall thing or if it's more of a case by case thing. My sister-in-law is still married to my brother (he's currently in jail), will this affect the survivors benefits? The reason we're so concerned about hte money is that my parents are going through Chapter 13 bankruptcy due to my dad starting a business that didn't work out, so for the next 5 years, money will be very tight, especially since I'm going to college next year. Also, I always thought that life insurance should be left to the adults who are taking care of the kids (if they are minors). Is this true? As my sister-in-law has it, half of her policy will go to her 18 year old son, and half to her 3 year old (who will be able to get it when she's 18 which is scary because it will probably be spent on a new car or something like that). But nothing to the baby because it's not born yet. Shouldn't that money be used to take care of the 3 year old and the baby until they are older? My sister-in-law just inherited half of a house from her mom who recently passed away. So ideally, she could give that to her son, and leave the policy to my mom who wants to put a large chunk away anyways to go toward the kid's colleges so it will be fully paid for when they reach that stage of their life, and if they don't go to college, they can have the money at age 24 when they would have been done, that's what my mom would like since she will be 62 when the baby goes to college.
Does anyone know any good websites where it says that life insurance policies should be left for the people taking care of the kids and not for the kids when they turn 18?
Thanks for any comments!