Prudential Financial: 5 Reasons Parents Should Buy Life Insurance
NEW YORK – January 13, 2022 – (Newswire.com)
Whether parents are experiencing life with a baby for the first time or have a nest full of young ones, protecting and supporting these children is a top concern. While no one likes to think about a future they’re not in, it’s important for parents to know how their loved ones will continue to live if the unexpected happens. And one of the best ways for parents to continue to support and protect their families is to get life insurance.
For any parents hesitant to buy a life insurance policy, here are five reasons to get one.
1. Provide replacement income
If a parent is the primary breadwinner, life insurance can be a source of income replacement in the event of departure. And while there is a clear financial need to purchase insurance on the life of a family’s primary breadwinner, it is equally important to purchase a life insurance policy for a stay-at-home parent with children or who manages the household. This is because it would cost a family money to have someone do these chores if the housewife was gone.
Term life insurance policies are an inexpensive solution that can provide income replacement for both parents, whether they go to work every day or not.
2. Cover the education costs of a child
As education costs continue to rise, many parents worry about how children might afford education if parents are not there to provide ongoing monthly support. Depending on the size of a life insurance policy, the death benefit payout could cover a significant portion of a child’s education costs. This means that children can focus on their studies without worrying about how to pay for tuition, books, accommodation, etc.
3. Pay a debt
Some parents choose to purchase a life insurance policy to cover a large debt, such as a mortgage or business loan. This way, the children would not be responsible for repaying the debt if the parents died before it was paid.
4. Leave a legacy
Parents may already have a will that outlines the assets that will be passed on to their children (and if they don’t, there’s no better time than the present to get one). But the right term or whole life insurance policy can give kids another financial asset to use.
If the children are already supported by other assets, proceeds from a life insurance policy can also be donated to charity. This means a relative can make a meaningful gift that will support their favorite charity long after they pass away.
5. Cover final expenses
There are many final expenses that can put a financial strain on an unprepared family. But a life insurance policy can help loved ones honor the memory of their parents without having to worry about who’s footing the bill. In addition to covering funeral and burial expenses, a life insurance policy can also cover inheritance taxes, which means there is more money from the estate to take care of loved ones.
A life insurance policy allows parents to provide financial protection and peace of mind to their loved ones. For parents of young children, paying out a life insurance policy can help offset the day-to-day expenses of raising children. For older children, proceeds from a policy could be used to cover education costs or leave an inheritance. Either way, all signs point to life insurance being a smart financial tool for parents who want to provide financial stability for their family should anything happen.
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