5 Ways Life Insurance Will Save Your Family
It’s probably a point of pride that you can provide for your family. Whether you’re in the workforce, or staying at home to raise the kids while your spouse works, it’s just not an option to cut groceries, housing and clothing out of your budget. These are things your children need to survive and thrive.
And yet many parents are rolling the dice on doing just that, by failing to get adequate life insurance.
Life insurance is a policy that will provide money for your children, you or your spouse in the event of your death or your spouse’s. Its purpose is to replace some or all of the income lost when one of you passes away. Without it, if you or your spouse dies, whoever is left will have to figure out a way to replace that lost income–all while going through the tragedy of losing a loved one.
LIfe insurance is for:
- Couples in which one is working and the other isn’t. It will provide for the non-working spouse if the earner dies.
- Families in which one parent stays at home. It will provide for the children and non-working spouse if the earner dies, and will cover funeral, medical costs and childcare if the non-working spouse dies.
- Families where both parents work. Yes, this too. It will help cover losing a large chunk of the family’s income.
We truly believe life insurance is one of the most important things to have if you have anyone depending on you for an income. And since today is the launch of the Life Insurance Movement, it’s a perfect time for you to join everyone around the country in signing up for a policy appropriate for you.
But just in case you need more convincing to sign up for life insurance, here are five big things it will do to save your family if you or your spouse dies:
1. The Funeral
The average funeral costs more than $6,000. A life insurance policy will at least cover this cost, so you can concentrate on remembering your loved one, instead of haggling with the funeral director.
2. Medical Expenses
If you or your spouse passed away from an illness or accident, that might mean there are medical bills left behind to pay–and they could reach into the tens of thousands of dollars. Having adequate life insurance means that you won’t have to declare bankruptcy because of outsized debts. (Medical bills are the leading cause of bankruptcy in America.)
3. The Mortgage
If your family is currently paying the mortgage on your home, you’ve probably calculated how much house you can afford based on your current household income, whether that includes one or both of you working. If an income earner dies, adequate life insurance will help you make payments on or even completely pay off the mortgage on your home, so you can avoid taking a loss selling the home in a crunch and uprooting you and your family.
4. Living Expenses
Everyone will feel the pain if one income is suddenly taken away from the family, but this is an especially important item for spouses who are stay-at-home parents, or even spouses who have unequal incomes. Adequate life insurance will cover living expenses so that even if the surviving spouse decides to start working again, they can do so carefully and deliberately–instead of in a panic. If the surviving spouse was out of the workforce, this will give them time to get more education or training to reenter the workforce if needed. Speaking of …
5. Schooling and Childcare
If your life insurance is adequate, it will enable you to keep contributing to your children’s college fund and/or allow your children to continue to go to their school if you are paying for private school. It can also help cover childcare if you go back to work, or, as mentioned above, keep you afloat while you go back to school and help pay for classes.
Notice We Said ‘Adequate’
Just being signed up for a life insurance policy isn’t enough. You should review your policy to figure out if it will cover everything you, your spouse or your children need in the event of the death of a provider. Some insurance policies pay out $30,000 or less, which won’t cover everything we’ve listed here–not by a long shot. You might need to switch to another policy, or sign up for additional coverage. Calculate how much insurance you need at the Life Insurance Movement site.
Ready to take care of this? We give you all the resources you need to pick out a good policy and sign up here.