Having Kids = Needing Life Insurance

If You Have Children, You Probably Need Life Insurance
According to a recent article in The Motley Fool, an alarming 75% of millennial parents currently do not have life insurance. A study by online platform Bestow indicated the reasons given by the millennials – the need to research insurance options and insufficient time – show they’re falling short when it comes to insuring their own lives and their loved ones’ welfare. Plainly put: It’s a bad idea to go without life insurance if you have children, regardless of your age.

That is true even if you and your spouse both work. If one of you dies, you might reason, the other can take care of the children financially. But is that true? What if you had bought a house together, assuming you’d both be earning money to pay the mortgage? In this case, the survivor might struggle to keep up with payments if you die.

You also need life insurance if you are a stay-at-home parent who earns no income. You may not be earning money to support your household financially, but your death would likely have a major impact on your family’s finances. If the full-time homemaker dies, for example, the surviving spouse will have to pay for child care in order to continue to work – and pay the mortgage.

There is an easy way to help you determine whether you need life insurance: Ask yourself, “Will my death make it financially difficult for a loved one (typically a spouse or child) to survive?” It doesn’t matter how much you earn. If the answer to the question above is “yes” – and it usually is if you have children – then yes, you need a life insurance policy. If you haven’t purchased life insurance because researching a policy is time-consuming, help is available. Your advisor can assist you in determining the policy that’s right for you and your family.