Life Insurance for Parents
The desire to protect your children is one of the most natural, instinctual
aspects of being a parent. But what would happen to their futures and dreams if
you passed away and left them without the resources they need to lead a
successful, productive life?
It's extremely important you ensure that your children have what
they need to survive in case you or your spouse dies. This is where
life insurance for parents comes in.
Whether you're single, married or divorced, buying adequate life insurance
means your kids have the finances they need for their daily lives, education
and future careers, no matter what life path they choose—and you have peace of
mind knowing they're well cared for.
Why They Need It
Studies show that having enough life insurance helps ensure your children:
- Have the resources to pay off
expenses and debts, and start fresh on their own
- Attend college—without going
into debt
- Get medical care and stay
healthy
- Maintain their quality of
living
- Pursue their future dreams
and career goals
If you're the sole breadwinner in your family, just think how things would
change for your family virtually overnight if you passed away. Your spouse and
children, left without financial support, would have to find a way to survive,
both financially and physically. Life insurance for parents would help make
that possible by providing for their needs.
If you're a single parent, leaving your children behind would mean they'd
have to find a place to live, as well as a means of support—completely on their
own. Once again, adequate parental life insurance would give them the resources
to make their way in the world.
Getting Covered
Now that you know you need it, what are your life insurance options and how
much should you buy?
There are essentially two types of life insurance for parents:
term life and permanent life. Term life
policies provide protection for a specific period of time and generally provide
life insurance only, with no accumulating cash value. When you die during the
policy's term, a term life policy pays your beneficiaries the policy's current
face value.
In contrast, permanent life polices provide protection for your entire
life—as long as you pay the premiums. But they also build cash value, which
leaves your dependents more money to tide them over 'til things get settled.
Which of these types you buy is totally up to you, and depends mostly on
your financial situation. If you're looking for the easiest, cheapest option,
we recommend a term life policy; if you can pay a little more in premiums and
want more protection, a permanent life policy might be just the thing.
Next, determine how much life insurance your children need
to carry on without you. This is best done one of three ways:
- Multiply your income by 8.
- Multiply your income by 6 and
then add in one-time expenses, such as paying off your mortgage or paying
for college.
- Total up your expenses, both
one-time and long-term, and multiply this figure by the number of children
you have.
Having enough life insurance is especially important for young families, as
they tend to have tighter cash flow. So keep this in mind if your children are
young, or you or your spouse is a stay-at-home parent.
Closing Tips
- Employer-sponsored
life insurance is rarely sufficient—and you can't take it with
you if you lose your job.
- Buy an individual
policy, rather than a group life plan. If you're healthy, group
policies are rarely cheaper.
- Don't forget to
calculate the contributions of a stay-at-home spouse, whose
premature death may mean hiring full-time child care.
- If you choose term life, go
with a period of time that carries your dependents through until
they no longer need your financial support—past college and into their
careers.
- Make sure term life
policies can be permanently converted once they expire. This
helps keep rates low.
- Don't forget to cover
funeral costs, medical expenses, estate taxes and inflation in your
calculations.
Take Action!
Your children count on you for support…so don't leave their futures to
chance. Give them your all with life insurance for parents. Contact InsureMe so
we can match you with agents on our network.
