Life insurance is one of those things that can provide peace of mind, especially when you have a young family.
We all want what?s best for our children. I know that one of my biggest fears is what would happen if I died, and my family — particularly my son — didn?t have the financial means to live comfortably. I want my child to have good opportunities, and part of ensuring that happens, even if I am no longer here, is making sure that my husband and I have adequate life insurance coverage.
Life Insurance Isn?t for You, It?s For Your Family
One of the things that you need to realize is that life insurance isn?t for you. It?s for your family, especially your children. Many people don?t look at this way, though. They see it as an expense that they won?t have an advantage from. Others fall for the myth that life insurance is too expensive for them to afford when they are young. These hangups are among the reasons that the National Bureau of Economic Research points out that too many American households are underinsured.
According to a recent NBER report:
Almost one third of wives and 10 percent of husbands would have suffered a decline in living standards of more than 20 percent had their spouse died in 1992. And 15 percent of wives would have suffered a decline in living standards of 40 percent or more.
This type of decline affects the quality of life enjoyed by your children. You need to get life insurance for the sake of your children, even if you aren?t as concerned about your life partner. In fact, even if you are certain that your partner?s income would be sufficient, you also need to consider the extra pressures on someone who has lost a partner. While my husband has a good job now, the reality is that if I were gone, he would need help caring for our son and our home. He would probably need to pay for these services. A life insurance policy can provide that needed money to at least help take care of the material needs of my son, and take some of the pressure off my husband.
Remember that life insurance isn?t for you. You should get life insurance for the benefit of your children, and for your family as a whole. It will provide everyone peace of mind.
You Can Afford Life Insurance
One of the biggest hangups that many consumers have is that life insurance seems to be costly. Many young families don?t get life insurance because they are struggling financially and think that they can?t afford it. However, the truth is that most families can afford life insurance.
You might be surprised at how little life insurance can cost (Allianz offers coverage for as little as $2.50 a week), especially when you are young and you choose a term life policy. Having life insurance is a small cost when you think about the consequences. If you are a breadwinner — and even if you aren?t — it?s important to think about the future of your family, and consider that you might not always be there to provide for them.
You should get life insurance for the sake of your children, so that if you do pass on, they can still have the money needed for survival, as well as for the future. Not only that, but your life insurance policy can provide your children with a bright future, even if you aren?t in it. Your policy?s payout might pay for college, or for some other valuable training that can help your child provide for himself or herself.
Getting life insurance is truly an act of love. Take a look at your monthly bills. Chances are that you are wasting your money in some way. Trim the fat from your budget, and use the savings to pay for life insurance premiums, and your entire family will be in a better financial situation now, and in the event that something unexpected and unthinkable happens.