When you decide to add to your family, you do so under the presumption that you’ll always be there for the child. From diapers to diploma, you’ll support him financially and encourage him in his dreams for the future. Sadly, life sometimes doesn’t work that way. Drunk drivers cross the center line. Hazardous equipment at work fails. A body gives out too early. While you shouldn’t worry about what hasn’t happened, it’s always wise to plan for the worst.
One of the nation’s most popular talk radio shows, The Dave Ramsey Show, frequently has callers who are dealing with the loss of a loved one. Some are calling in for help on figuring out how they’re going to make it on the income from a part-time job while raising four little ones because their partner didn’t have life insurance while others are wondering how they should invest the life insurance money so that they can make it last as long as possible. Though the later person is also going through rough times emotionally, they’re able to work through it without worrying much about money. Here are some additional reasons why all parents need life insurance:
Adding children increases your expenses.
Pre-children, being a double-income couple without life insurance is not a huge problem. Either one of you can get on with life, financially speaking, without the need for extra money. But with kids come more expenses. They outgrow their clothes every season; diapers and formula are not cheap; soccer teams and piano lessons can get expensive. Having life insurance ensures that you’ll have enough to provide the necessities, and probably even the extras, for your kids if your partner passes on.
Raising a child on one-income is tough.
If you’re used to two incomes, it’s hard to get by on one without making some significant changes. Having life insurance will allow the family to more easily maintain the same living standards in this time of sadness. Even if you’re a stay-at-home mom or dad you need to take out a life insurance policy on yourself because you provide a huge economic benefit to your family, whether they realize it or not! Packing nutritious lunches saves money and keeps the kids healthy, while keeping a healthy diet and supplements from this Panalean review; also picking them up after school and shuttling them to and from extracurricular activities saves on a babysitter or nanny; at night you do the job of a nanny and you never have to worry about taking a sick day from work to stay home with the kids. If the unthinkable happens your partner will have to hire a number of people to help with all the tasks that you do day in and day out.
You’ll want to leave money to your child’s guardian.
Hopefully you’ve made a will and have a guardian in place so that your child will be taken care of by a close relative or friend if both you and your partner pass on. Most people will willingly take on an extra child or two when tragedy strikes even though it’s not easy on their finances. Having life insurance in place ensures that you don’t burden the caregiver with the extra expense and allows for your child to have money for lessons, classes and their future educational pursuits.
For about the same cost of a family night–dinner out and a movie–each month you can have life insurance that will be in place until your children are adults. Make your own pizza and watch a favorite DVD if money is tight; there are lots of ways to make memories with your kids but it’s hard to replace an income when someone suddenly passes on.
For more information on life insurance or to apply, contact us today!