As a dad, you have many responsibilities and protecting your little ones is a top priority. You won’t be around forever, but you can plan to ensure if anything happens to you, your family will still be okay with a Term Life Insurance policy. You hope to live a long, healthy life watching your child grow, but what if?
WHY DADS NEED LIFE INSURANCE
If your family relies on your paycheck to live, then life insurance can be your family’s safety net. If the unthinkable were to happen, and you were to pass away, your family loses your income while still responsible for a variety of expenses. A term life insurance policy provides a tax-free lump sum cash payout to your family, known as a death benefit.
Life Insurance can help cover end-of-life expenses such as:
- Funeral and Burial Costs – Your funeral and burial may cost your family up to $10,000 depending on the type of funeral that they select (or that’s stated in your will).
- Legal Fees and Probate Costs – Your family may have to pay probate costs, based on how your will is structured. These fees may be up to 8% of the total value of your estate. Legal fees from any attorneys managing other duties related to the administration of your estate can also be costly.
- Your Medical Expenses –The unfortunate reality is that medical debt can happen as a result of serious health conditions and accidents. Dying prematurely may bring large hospital bills which you do not want to saddle your family with.
In addition, a term life policy will:
Maintain your family’s standard of living.
The loss of your income can have a devastating impact on your family’s standard of living—but it doesn’t have to. Your term life policy can provide a replacement for lost income for your family for a term that you select, allowing them to avoid financial burden as they manage their grief.
Shield them from the negative impact of personal debt.
It’s not uncommon for young parents to still be paying off their own college loans.. If you have loans, then they may not be discharged after you are deceased. Your creditors may sue your estate for the balance of your loan (or your co-signer) if your loved ones are unable to make payments. Other consumer debts—such as credit card debt and car loans—may also remain active. Your life insurance policy can pay off these debts or cover payments, allowing your family to remain financially secure.
Provide a financial cushion for your children, as well as pay for their education.
You and your partner may have plans to cover your child’s college tuition. A portion of the life insurance death benefit could go helping continue those plans with anything left over going to an emergency savings account.
Most people overestimate the cost of life insurance by 3x the amount. You can see how affordable term life can below. https://www.rogersgray.com/personal-insurance-ma/life-insurance/
For more information about life insurance or to start a quote, click the link below!
STILL HAVE QUESTIONS?
Sr Director of Sales | Private Risk
Patrick is the Senior Director of Sales for Private Risk at RogersGray Insurance.
Patrick started his insurance career at a young age working in his father’s agency. He has experience in both the family agency environment as well as a background working in Fortune 100 carriers. You can connect with him on LinkedIn or by email.