Many people who are just starting out with a family know that it can be tough to make ends meet. From buying a home to raising children, there are endless responsibilities that come into play. One of the most important, and often overlooked responsibilities, is making sure your family will be protected financially in the future, should something happen to you.
Consider for a moment what would happen to your family – or any young family – if you or the main income provider were to suddenly die. Would your family lose the house? Would your children have to leave their friends and move to a different school? Would the standard of living they are accustomed to remain the same if you were gone? The best way to make sure that your family is financially secure in the future is to ensure you have enough life insurance coverage now. Unfortunately, there are some myths that young families mistakenly heed regarding life insurance, which sometimes result in financial devastation for loved ones left behind:
- “Life Insurance Policies are Too Expensive.” Actually, there are many different options when it comes to purchasing a life insurance policy, many of which are quite affordable. One of the best and least expensive options, especially for young families who may have limited budgets, is to purchase a term life insurance policy. Term life insurance offers the most coverage for the lowest premiums; it is mainly for this reason that so many young families find a plan that fits their budgets, their needs, and their lifestyles.
- “Term life insurance is the only type of coverage I’ll need.” Although it’s a great option at first for young families who have limited budgets, that doesn’t mean it should be the only type of insurance they should have. Permanent life insurance offers valuable unique features like the ability to accumulate cash values on a tax-deferred basis and lifetime protection. It’s similar to assets in many retirement savings plans, where cash can be borrowed against the policy (or accessed altogether) for important needs.
- “I Don’t Need Life Insurance Since I’m not the Primary Income Earner.” Whether you bring home a large paycheck, or yours is the only paycheck, or even if you don’t earn a paycheck, you might very well need life insurance coverage. If you are a stay at home parent, you perform valuable services that would be costly to replace for your spouse or partner. Childcare costs alone can easily run in the hundreds or thousands of dollars every month; a good life insurance policy will provide the funds to cover such expenses.
In order to fully protect the financial well-being of your family in the event of your death, you need a life insurance policy – but not just any policy. It’s vital that you have enough coverage for your family, and that you have the right type of life insurance. For more information on life insurance for young families, and for quick, accurate online quotes from leading providers, use Intramark’s online quote tool.