Get connected now

Contact me

Viewing article within:

Be Wise With Money

Life Insurance: A Lifestyle Preserver

Funds from life insurance policy help pay for everyday needs

You might think life insurance is only for working parents. It's there so if you die, it can help cover a lost income. That means the mortgage gets paid, the college funds remain intact, health insurance can be paid for, debts get covered – things like that.

Maybe, but that's not the whole picture.

Life insurance isn't just for protecting the big-ticket items. Think about all the other things you do or spend money on. Mowing the lawn. Fixing leaks around the house. Taking care of the kids. Shoveling the driveway. Cleaning the house. Chauffeuring the kids to soccer, ballet, music lessons and more.

If you've built your lives around the time, effort and money of two parents, what happens when it unexpectedly becomes just one parent? If you think the surviving parent will be able to do it all, you may need to think again. He or she is going to need help – and paying for that help takes money that may not be in the newly single parent's budget.

But life insurance isn't just for a working spouse or for parents. Our lives – whether we are married or single, with or without kids, retired or still working – come with expenses. Whatever stage of life you're in, life insurance can help make sure the family you leave behind is covered:

Single – "Pay off college or car loans that your parents or others may have co-signed, as well as credit cards or other debts you have," says Sarah Auernhammer, a Thrivent Financial representative in Hermosa Beach, California.

Married, no kids – Do you have a mortgage that would be unaffordable on just one salary? Life insurance is "there to help support and protect your short-term and long-term goals," says Jim Quayle, a Thrivent Financial representative in Iron River, Michigan.

A stay-at-home parent – A stay-at-home parent likely handles many household and childcare tasks – tasks that you'd likely have to hire someone to handle. For instance, the average cost of day care for a baby or toddler is $11,666 per year ($972 a month), according to a 2013 report from National Association of Child Care Resource & Referral Agencies.

Retired – If you have a pension, annuity or Social Security benefits, those payments might not continue for your spouse or they may be reduced; life insurance can help replace that income.

Get connected now: Contact me