The Importance of LIfe Insurance

Just about everyone needs life insurance but most people don’t realize how important this is and ignore it. The majority of people who would benefit the most from carrying life insurance are the ones who don’t carry it because they don’t fully understand how their life contributes to their families stability, especially if they are stay at home or single parents.

Life insurance is something you should carry regardless of whether or not you are the main breadwinner in the family. If you are a stay at home parent, you may feel your death would not have any significant financial impact on your family but you are wrong. The cost to pay someone for the services you currently provide for your family could have a huge impact on your family’s ability to survive and continue their current lifestyle.

For example your spouse would have to pay for daycare and housekeeping services to continue with the same lifestyle they currently enjoy that you provide for free. This can get quite costly if you look at what these services cost in your area.

Single parents should also carry life insurance to protect their children financially against the unforeseeable death of the only breadwinner in the family. The majority of single parents are women and over eighty percent of women with children live in poverty because they don’t get the court ordered child support their children need.

Parents in this position may feel life insurance is a luxury they cant afford or don’t need but neither one of these statements is true. Life insurance doesn’t have to cost that much and the younger you are when you invest in it the lower your premiums generally are because the odds of your collecting are statistically lower. This means the insurance is generally affordable and if your children never end up collecting it the small premiums were worth the peace it provided you.

The worse case scenario though is you die and your children end up living with a dead beat parent, relatives who may or may not be able to afford their care, or worse yet in state foster care and there are no assets set aside to ensure your dreams and plans for your children can come true.

Think about it, everything you do now is for your kids, and as a parent you envision a better life for them than you have. A better life usually involves a college education which starts by having a solid stable home life, attending good schools and activities beyond the scholastic to help build character and skills. You may be willing to struggle and sacrifice to make sure your kids get these things but will a guardian in your absence?

Life insurance can be set up to be paid into a trust for your children to make sure your children get what they need and what you envisioned for them in your absence. It can be the last way you impact your children’s lives and ensure they are taken care of.