Although most people don’t want to think about their own death or the death of a loved one, preparing for the event is one of the most selfless acts you can do for your family.
The first thing you want to do, if you haven’t already, is ensure that the primary breadwinner in the family is covered. Nothing can replace a spouse or a parent, but the financial consequences of that loss are another matter. Life insurance can protect the surviving family members from the loss of future income and the expenses that occur as a result of a death. Most people understand the importance of life insurance for the primary breadwinner, but there are other considerations as well.
Very few families today can survive on one income, so even if a spouse makes less than the primary breadwinner, you should take a look at what the loss of that income would mean to your family. Could you survive financially if you lost that second income? Or, let’s say that spouse doesn’t produce a monetary income, but he or she is the primary caregiver of children or aging parents. What would it take, financially, to replace that care? No, life insurance can never replace the love of that caregiver, but it can give the survivors some peace of mind that their essential needs will be taken care of.
Finally, the death of a child is probably the worst thing that can happen to anyone, and it’s every parent’s worst nightmare. It’s something no parent wants to even consider, but in the event that something should happen, life insurance can at least alleviate the financial burden of a child’s death. Many people believe that purchasing life insurance for children is a giant waste of money. Your children probably aren’t bringing home a paycheck that you rely on to pay the bills, but there are other factors to consider.