When you think about life insurance you probably think about replacing the income of the main wage earner in your household, but life insurance can do much more than that. Whether you’re the main income earner, a contributing income earner, or a stay at home mom, life insurance is an essential financial planning tool. You should know these 5 things about life insurance to see how life insurance is an affordable way of protecting your loved ones:
1. It’s cheaper to insure women than men
Yes, you read that right! Many people don’t realize that it’s actually cheaper to purchase life insurance for a woman than it is for a man. Women are considered a lower risk option for insurers as they generally live longer; this means that life insurance premiums for women can be significantly cheaper!
2. Life insurance is more affordable than most people think
Studies show that over 80% of the population significantly overestimate the cost of life insurance. In fact, it’s common for people to overestimate premiums by over 100%. The only accurate way to see how much life insurance would cost for you is to request a personalized quote.
3. Life insurance can cover expensive end of life costs
When thinking about their future financial planning needs one cost people often overlook is end of life expenses. The average funeral in the US now costs between $7,000 and $10,000. Even if your family’s day-to-day living costs would be covered were you to pass away, the expense of paying for funeral costs can put serious financial strain on your loved ones. A life insurance policy is a great way of protecting your loved ones from the additional burden of these costs.
4. Stay at home moms need life insurance
As a stay at home mom it can be easy to underestimate the financial value of your contribution to the household. Whether you’re looking after your children, cooking, cleaning, or driving your kids to various activities, you’re providing a service to the household. As a mom you do these things because you love your family and you want to care for your loved ones, but what if you weren’t around? To really understand why having life insurance is essential for stay at home moms it’s important to think about the cost of paying someone else to provide these services to your household. For example, if you have very young children you could expect to pay up to $18,773 per year for infant care. Life insurance is a simple and affordable way to cover the cost of caring for your family if you were to pass away unexpectedly.
5. Life insurance is essential for single moms
If you’re a single mom life insurance is an essential financial planning tool that can help provide long-term care for your children. A cash lump sum can not only pay for the care of your kids in your absence but also let you leave money for future plans. Although many people use life insurance to cover essential day-to-day care costs it can also be used to pay for future expenses such as college tuition costs and wedding funds. Life insurance is a way of leaving the financial backing to help your children achieve their dreams.
If you’d like to learn more about how term life insurance can provide financial protection for your loved ones call our licensed life insurance agents or use our online quote form, today!