Discussing life insurance is rarely a comfortable or happy conversation. No one wants to think about their own mortality or living their lives without a loved one, but it’s one of the most important conversations anyone will ever have. It’s a gross misconception that only the primary breadwinner in the home needs a life insurance policy, and many families make a drastic mistake not taking the time to understand what they need, how to get it, and what it means for their family. You need life insurance, and there are several reasons you cannot pass up the opportunity to purchase a policy right now.
1- Income Replacement
Common sense dictates you need income if a working partner in the relationship passes. If you’re a family with a working parent and that parent dies, you need to replace their income to make ends meet. What you might not understand is even non-working parents contribute to the finances. Take a stay-at-home mom as an example. She hasn’t worked in years because she’s home caring for the kids. Many families make the mistake of assuming she doesn’t need a life insurance policy because she doesn’t contribute financially.
She does, but families don’t realize that. By being home with the kids, she’s saving the family thousands of dollars a month on childcare. Kids get to come home after school to a mom who’s there to feed them and care for them. If she was no longer around, who would care for the kids during the day while the other parent is at work? The other parent might make a good living, but is it good enough to add the expense of daycare or before and after school care to the budget?
2- Final Expenses
Thinking about your funeral is devastating, but you must do it. Can you afford to pay for the final costs of a loved one? Life insurance can help you pay for funeral expenses and other expenses you aren’t prepared to pay for. The average funeral costs upwards of $10,000. With more than half of all Americans living in extreme debt, they can’t afford to spend that kind of money on a funeral or burial.
3- Debt Repayment
Losing a parent is devastating enough for a family, but what happens when the remaining spouse is left to pay off all their debts? “Life insurance is necessary for any family who has debt including credit cards, mortgages, car payments, and other debts,” said McMillian Insurance Agency. Leaving your surviving spouse to pay for all those debts is devastating for many families, and it’s not affordable. Don’t leave your family in a hole you could have prevented.
4- Caring for the Kids
Even if you don’t have debt, you might want life insurance to care for your kids when you’re gone. The cost of their college education is expensive, and they might not be able to afford it on their own. If something happens to you and you’re unable to pay for the education of your children when it’s time, you want to leave them with the gift of an education.
Many financial advisors suggest you shouldn’t pay for life insurance that exceeds the amount of debt you owe, but caring for your kids is your number one priority. If you’re worried they might not use the money responsibly, you can set it up in a trust dictating how and when it’s to be used so they don’t blow it on something they don’t need when an education is what’s important.
Life insurance is a sad subject, but it’s one of the most important conversations you’ll ever have. If you and/or your spouse are without a life insurance policy, now is the time to purchase one. Calling your insurance company begins the process. You’ll undergo medical testing and fill out paperwork, and your insurance company will contact you with a quote once they’re aware of your health history and current health. Don’t wait any longer. Life insurance only becomes more expensive as you get older. Now is the time to purchase what you need to care for your family.