Life Insurance for Parents: Why You Need It
Most parents are always preoccupied with thoughts about their child’s health and future prospects. Right from whether their kids are eating right to whether they will get along with other kids in the school, a parent's mind is never at rest. Being a parent can be a bag of mixed emotions; it can be an amazing experience yet terrifying in equal measure. For parents, their children’s happiness means the world to them. Life insurance might not have crossed your mind before you had a child relying on you. But once a child enters your life, it changes everything.
Life is unpredictable. If the unthinkable were to happen to you or your spouse, you would have one less thing to worry about during such a difficult time knowing that your children will have financial protection. Moreover, life insurance can safeguard the financial security of the whole family since the loss of a insured parent can subsequently trigger the loss of income for the other parent as well, especially as they cope with the physical and emotional impact.
Life Insurance is one of the more affordable insurance plans, and it’s something you as a parent know will have value for your children no matter what happens in life thus helping provide greater peace of mind.
Term life Insurance: Why you need it
Term life insurance pays out a lump sum if the policyholder meets an untimely demise within the policy period thus proving to be an inexpensive way to protect your family’s financial future. Additionally, term insurance plan is an excellent way to ensure a lifetime of financial security for your family. Term Life insurance is more affordable and straightforward than you think, and the peace of mind that accompanies it is simply priceless.
Term life insurance: How much does it cost for parents?
Term life insurance makes sense especially for young, middle-income families with children because it covers your life against unforeseen circumstances for a given period of time, with affordable premiums. Moreover, you can even customize the term length and coverage amount as per your own budget. Simply put, term insurance doubles up as a financial safety net to make sure there's money available to cover for everything from medical and grocery bills to a home mortgage and even future college education costs for your children.
By planning, you can ensure that if something untoward were to strike, your family, particularly your children, will be able to manage life’s necessities. How much Life insurance you need depends on your individual situation. It’s paramount that you take into consideration how the surviving spouse will be able to afford and maintain your current standard of living. Consider the following questions:
- Are you straddled with debt that you want the life insurance policy to take care off? For example, a house mortgage, student loans, credit cards, or car loans.
- How much monthly income does your family need to survive or meet day-to-day requirements? The amount of salary you draw at the end of every month is a good place to start.
- In your opinion, how many years would your family need to depend on your monthly income alone before they can be financially stable?
You might want to get a term life insurance policy that’s around five to 10 times your annual income. You also need to ensure you purchase an appropriate amount of coverage considering your family’s situation.
It’s imperative that you purchase life insurance, especially if you have dependent children to take care of. While life is indeed valuable, the proceeds of a life insurance policy can be used to soften the blow. There’s no excuse to postpone buying life insurance and it’s crucial that you get insured quickly to protect your family financially today.
AN Dec 22/17