Daily family life means the mortgage gets paid . . . clothes and groceries are bought . . . and summer vacations are taken with family and friends. All this is part of what many of us take for granted every day of the week. However, there are two important financial factors that have a great impact on today’s family life. First, in order to provide everything we want, many families find that both spouses must work. Second, if only one spouse works, the spouse who stays home raising the children is making a “non-cash” contribution. The total worth of this contribution is often impossible to ascertain. So, what happens when one income suddenly no longer exists? Or, you now need cash to pay for what was “free” yesterday?
Because life may throw us a “curveball,”—for instance, the tragic death of a spouse—the impact on a family’s finances can be overwhelming. This is where life insurance can be of great value. The proper insurance can help replace the income of a spouse or provide additional income so your children will continue to be cared for and family life will continue to run on course.
To underscore the point, look at the income in real dollars if both you and your spouse work. What would the extent of that lost income cost your family? The other side of the problem is how much cash would it take to replace all that the “non-working” spouse contributes to your family?
Things become even more complicated if you have a child with special needs. If your non-working spouse is providing care for that child, who will handle those duties in the event of your spouse’s death? Insurance can help develop a plan so that the child would continue receiving the proper care.
It’s easy to conclude that the wonderful lifestyle you and your spouse provide your family could become unraveled. Funds that have been set aside for other uses such as college, a child’s marriage, or your retirement may now need to be reallocated and used to pay monthly bills. Other complications arise if you have children from a previous marriage who are relying on you for help now and in the future. However, all of these situations can be addressed ahead of time, and confidently so, when life insurance is in place.
We all take a good deal of what we have for granted—it may be human nature. But, life surprises us in so many ways. Be proactive, provide your spouse (and yourself) with the comfort of knowing that the needs of your family will be addressed. You can do this by insuring each other so your family will continue even after the loss of a spouse. There are many types of life insurance, most of which are subject to application and underwriting approval.
When applying for life insurance they may take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities to help determine the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Remember, guarantees are based on the claims paying ability of the issuing company. Consult with your insurance professional for more information.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This article was prepared by Liberty Publishing, Inc.
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