The basic purpose of life insurance is mainly to protect dependents and loved ones with financial support in case some mishap befalls you. There's nobody who needs this support more than your children.
It is of dire importance that parents make sure of adequate life insurance coverage for their children in the event of the death of one or both parents. Irrespective of whether it is a dual income household, one-income household or single parent, every parent needs life insurance for their children. Only adequate life insurance coverage can ensure peace of mind where concerns over children are concerned.
Dual Income Households
If both spouses work to support themselves and their children, one salary would probably not be enough to cover all expenses. Factors that need consideration when deciding on life insurance needs include college education for children and children's health costs both now and for the future.
It becomes even more relevant for cases where only one parent's employee provides health insurance for the family. The newly single parent may not be able to cover all the costs. Lifestyle of the family is another consideration if quality of living will change drastically with the exit of one parent. Mortgages, rental payments every month, taxes, homeowner's insurance, etc are all necessary to consider. Also relevant are debts including credit card, and car payments and the parents of the parents who may eventually become financially dependent.
Single-Income Households, Two Parents or One Parent
In case of a sole breadwinner in the family, things would change dramatically overnight if that person were to pass away. The non-working spouse may be compelled to find a job quickly enough to support the household and children's expenses, which can take time. The salary may be lower than what the previous breadwinner was earning, at least initially. For those owning a home, the surviving parent is also faced with mortgage payments on their own. The house may even have to be sold and at the same time an alternative place has to be found for the family to live in. Therefore for a sole breadwinner in the family, sufficient life insurance coverage is essential.
For single-income households, if something were to befall the earning parent, the children should have some place to go where they will be adequately provided for. The person, whether or not an ex-spouse, should be able to support the children in addition to themselves. So it is important for a single parent to get coverage of a good life insurance policy. If anything were to happen to the single parent, the children's lives would change overnight and only the knowledge that they will be taken care of will bring peace of mind.
Even for households with no children for those married but yet to have children, it is still important to think about whether the spouse would be able to cover all the costs if the other were to pass away. This is even more relevant in case of owning property or large debts to pay off. If one eventually decides to have children, they should reevaluate their life insurance needs before the children are even born, to ensure that the father is insured if childbirth complications were to affect the mother, so that both parents are covered if anything were to happen to either spouse while the children grow up.
Conclusion
Therefore it is of utmost importance to ensure that children will be taken care of if mishap were to befall either parent. Dependents count on parents for financial support and this should be taken care of in the eventuality of something happening to a parent. Get peace of mind for yourself by ensuring that your life insurance coverage will be sufficient for your family's unique life insurance needs.
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