Whether parents are experiencing life with a baby for the first time or have a full nest of young ones, protecting and supporting those children is a primary concern. While no one likes to think about a future they're not in, it's important for parents to figure out how their loved ones will continue to go on if the unexpected happens. And one of the best ways parents can continue supporting and protecting their families is to get life insurance.
For any parents on the fence about securing a life insurance policy, here are five reasons to get one.
1. Provide Income Replacement
If a parent is the primary breadwinner of the family, life insurance can be a source of income replacement if they're gone. And while there's an obvious financial need to take out insurance on the life of a family's primary breadwinner, it's equally as important to get a life insurance policy for a parent who stays home with children or manages the household. That's because it would cost a family money to have someone do those tasks if the homemaker were gone.
Term life insurance policies are an inexpensive solution that can provide income replacement for both parents, whether they go out into the workplace each day or not.
2. Cover a Child's Education Expenses
With education costs continuing to rise, many parents worry about how children would afford education if the parents aren't around to provide ongoing monthly support. Depending on the size of a life insurance policy, the death benefit payout could cover a substantial portion of a child's educational expenses. That means kids can focus on their studies without worrying about how to afford tuition, books, lodging, and more.
3. Pay for a Debt
Some parents choose to take out a life insurance policy to cover a sizeable debt, like a mortgage or business loan. That way, children wouldn't be saddled with the responsibility of repaying the debt if parents were to pass away before it's paid.
4. Leave a Legacy
Parents may already have a will that outlines what assets will pass to their children (and if they don't, there's no time like the present to get one). But the right term or whole life insurance policy can give kids another financial asset to use.
If kids are already cared for by other assets, the proceeds from a life insurance policy can also be given to charity. That means a parent can give a meaningful gift that will support a favorite charitable organization long after they've passed.
5. Cover Final Expenses
There are many final expenses that can put a financial strain on a family that isn't prepared. But a life insurance policy can help loved ones honor their parent's memory without having to worry about who is going to foot the bill. In addition to covering the funeral and burial costs, a life insurance policy may also be able to cover estate taxes, which means there's more money from the estate to care for loved ones.
The Bottom Line
A life insurance policy allows parents to provide financial protection and peace of mind to loved ones. For parents of young children, the payout from a life insurance policy can help offset the day-to-day expenses of raising kids. For older children, the proceeds from a policy could go toward education expenses or leaving a legacy. Either way, all signs point to life insurance as a smart financial tool for parents who want to give their family financial stability if something were to happen.
Contact: carolina.darbellesv@iquanti.com
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Original Source: Prudential: 5 Reasons Parents Should Get Life Insurance
