When I worked as a TV news reporter, I covered an array of stories where people lost their lives. Car accidents, murders, house fires and Hurricane Katrina were among the hardest stories about loss.
Loved ones were left to recover emotionally from their loss. Then they had to figure out how to cover unexpected funeral expenses. In our newscasts, wee shared stories about grieving families seeking donations and holding fundraisers because they couldn’t afford burial on their own. It was a sad reminder that everyone, even babies and children, need life insurance.
Throughout my childhood, college and graduate school, my parents covered my life insurance.
But shortly after I had A.J., I realized I needed to invest in additional life insurance. Not only for my funeral expenses but to handle a huge expense – childcare. Since I work from home, I’m also A.J.’s primary caretaker and if something suddenly happened to me my husband would have to hire a full-time nanny to care for him.
As morbid as it is to think about, A.J.’s got life a insurance policy too. Because he’s so young, his premium is less than $10 a month. I can increase the value of the policy and choose to use it for his college expenses when the time comes. My husband pays for his life insurance through his employer. His loss of income would be a huge hit for us since he’s the breadwinner in our family. Thankfully, we’re covered pretty well.
I’ve heard people assume the death benefits from the Social Security Administration (SSA) would be enough to cover what they’d need to bury a loved one. But I can tell you from my family’s recent experience with losing my Father that’s not the case. The SSA benefit is rarely more than a few hundred dollars.
Have you considered how much life insurance you need?
Did you take into account how your family will handle your debts, funeral expenses and your loss of income?
Disclosure: This post is presented by Genworth Financial
where you can learn more about mortgages and planning ahead for your family’s future.
All thoughts & opinions are 100% my own.