Household Expenses
Of course, you can’t be replaced, but someone can be hired to help keep the family functioning as best as possible under tough circumstances. A life insurance policy can help with childcare. According to the National Association of Child Care Resource and Referral Agencies (NACCRA), full-time infant care costs an average of $16,000 a year, and after school care averages $11,000 per child on an annual basis. If you have a spouse who works at night or travels, the costs for child care can even be higher. If you’re uncertain how much of an insurance policy to take out, some financial gurus today recommend a $400,000 to $500,000 life insurance policy to make up the costs. With the lump sum that your family receives from the proceeds of your policy, your family will be able to maintain their lifestyle.
Ongoing Financial Obligations
The proceeds from the life insurance policy will also help avoid forced debt. Like most families, you probably have a mortgage, car loans and other rolling expenses. A stay-at-home parent with life insurance can help ease the burden of the surviving spouse with having to pay these ongoing expenses in the event of your death. Having access to money in a timely fashion with a life insurance policy will certainly help avoid financial stress at a tough time when the family is grieving your loss.
Children’s College Education
A life insurance policy can also help pay for your children’s college education. Keep in mind that if you have young children, the price tag of a college education is likely to be much higher when your child reaches college age than today’s tuition costs. According to the College Board, public college tuition in 2015 will average $26,000 a year and is expected to increase to $35,000 by 2020.
Funeral Expenses
Today, the average funeral costs range about $10,000. Having a life insurance policy will ensure that your loved ones are not saddled with this expense. When making funeral arrangements, the last thing a family needs is to be worrying about how to pay for it. Financial stress will just add another burden for them.
Even if you’re not a stay-at-home parent, life insurance is important for every family. Everyone’s lifestyle and personal circumstances are different, and it’s important to select the right kind of life insurance that best meets your unique needs. Today, it’s easy to find the best rates for life insurance online. You can do a search and compare rates at industry insurance sites. Getting life insurance will give you the peace of mind that you need knowing that your family will be taken care of if anything should happen to you.
source: marriedwithdebt.com
