5 Reasons every parent should have life insurance
Oct 01, 2012 1:07 AM by Vicki Clinebell
 The death of a parent can leave children without options if there's no insurance coverage. Responsible parents should have a plan in place. Protecting those that you love the mostAccording to recent studies by Forbes Magazine, 69 percent of single parents and 45 percent of married parents don't have life insurance coverage. It's a growing problem when you consider that this means many children will be without financial support if they have to deal with the unexpected death of a parent. Debt protectionThe younger the parent, the fewer the assets and usually the greater the debt. This can put a child's future in jeopardy. If a parent dies, insurance can help meet immediate care needs, and coverage may also provide for educational goals, including college. Having adequate life insurance to pay off your mortgage can mean that your children won't face an uncertain financial future without you while the estate disappears to pay off outstanding debts. CareIn any family scenario, life insurance is a must — but it is essential in single-parent homes, where one person is both the breadwinner and caregiver. The value of this person is irreplaceable without preparation and magnifies the tragedy of losing a parent for the children involved. EducationThe unexpected death of a parent can put an end to dreams of higher education without the protection of life insurance. As parents, we all have hopes for a better life for our kids, and a college education is a big step in that direction. With ever-rising costs at universities, the loss of a parent can be a financial blow that puts tuition and college fees out of reach. Adequate life insurance can make the difference by covering daily expenses and providing for the future. Immediate expensesOne of the reasons many parents go without life insurance is that they don't really want to think about death. Others believe it is costly and beyond their financial means, especially in a difficult economy. For those with little extra cash to squeeze out of a tight budget, term life insurance can provide an inexpensive safety net and will cover some immediate expenses, including funeral costs. In tragic times, children should not have to deal with finding money to cover immediate expenses. Living expensesBeyond covering funeral costs and providing for future educational goals, life insurance can provide a reasonable annual income for your children that covers family living expenses. A common rule of thumb is to have enough life insurance coverage to equal six to ten times your annual income.
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