Why You Need Insurance if You Have Children

Why you need insurance if you have childrenA solid term life insurance policy or whole life insurance is a smart investment for anyone. But if you have children, insurance is another one of the responsibilities that comes with parenthood.

Many single people have no dependents, therefore, they can get away with a modest insurance policy that will cover their funeral expenses when they die. But when you get married, buy a house, and become a parent, your lifestyle expenses mount. There’s a lot to think about and to pay.

Here are just some of the expenses you’ll want covered for your spouse and children. Insurance can help take care of it all.

  • Credit card debt: In many states, credit card debt becomes the responsibility of the surviving spouse. Your insurance policy should cover your debt.
  • Mortgage: Paying off your mortgage with your life insurance policy gives your surviving spouse and your children one less worry.
  • Childcare: Are you the primary caregiver for your children? Insurance should cover childcare expenses if your spouse continues to work.
  • Your salary: In a double income home with children, insurance should cover your salary so your spouse and children can maintain their standard of living.
  • College: Alleviate another burden for your family if you have children and purchase enough insurance to cover the rising costs of college education.
  • Your funeral expenses: This is the expense most people think of when they consider life insurance, and certainly, it is one of the basics. The average cost of a funeral in 2009 was approximately $6,500 according to the National Funeral Directors Association. You’ll want to have more than this set aside in your insurance policy to cover rising costs.

 

Source:  http://www.nfda.org/media-center/statisticsreports.html

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