Life insurance is an important part of any family's financial portfolio as it offers peace of mind and financial protection if a loved one passes away. However, life insurance needs can vary over time, and coverage amounts may need to be adjusted depending on the season of life and other mitigating factors. In today's blog post, we'll look at why young families specifically benefit from additional life insurance coverage, and the factors to consider when assessing life insurance needs.
Greater Loss of Future Income
Losing a loved one is always a difficult event, but this is especially true when the primary wage earner passes away, leaving a young family behind. When a husband or wife passes away at a younger age, there is a greater loss of future income and earnings potential that must be replaced by the surviving spouse or family members. However, purchasing a larger amount of life insurance for primary wage earners ensures that survivors are able to meet their immediate and long-term financial needs without falling into hardship or drastically changing the family routine. If the surviving spouse is a stay-at-home parent, having ample life insurance may allow that parent to remain at home instead of having to return to the workforce to provide for young children. If the surviving parent is the primary wage earner, then life insurance benefits can help offset the cost of daily childcare or a nanny when the primary wage earner returns to work.
Covers More Expenses For Young Children
The cost of raising a child in the U.S. from birth to age 18 now averages over $245,000, and these expenses increase as the child ages. For families with young children, especially large families, life insurance can help cover these increasing costs for care and future expenses if a parent passes away. For example, life insurance can provide surviving parents of young children the financial assets needed to cover such costs as health care, dental or orthodontic work, college tuition, a vehicle, or even future wedding expenses. This form of financial protection allows families to grieve and move on while protecting the financial future of their young children.
Helps Alleviate Outstanding Debts
Unfortunately, debt has become a normal part of the American life. The average American has over $15,000 in credit card debt, owes over $150,000 on their mortgage, and accumulates over $32,000 in student loan debt. When a family member passes away unexpectedly, they can leave a large amount of debt behind for their survivors to deal with. Thankfully, a comprehensive life insurance policy can help eliminate or greatly pay down outstanding debts and balances for mortgages, credit card debts, and student loans.
Life insurance coverage is never a fun topic to discuss with your loved ones, but it's critical to ensure that family needs will be met and financial disaster avoided with dependable, affordable life insurance solutions from Aegis. The friendly and experienced agents at Aegis can work with you to analyze current and future financial needs and goals to ensure that family members are protected in the event of a sudden loss of a family member. Quality life insurance solutions offer stability, peace of mind, and flexibility so that surviving family members do not have to stress about their finances. Call Aegis today at 713-850-7622 for more information about our full range of Life Insurance options, or go online to request a free quote today!