Why Parents Should Consider Life Insurance

“Plan for the worst, hope for the best” is an oft-uttered mantra among parents. It makes sense. Parenthood is filled with unknowns: curveballs and unforeseen circumstances that, if you aren’t prepared, can interfere with your family’s well-being. Of course, you’ll always hope that the rosiest scenarios play out, but you want a contingency plan in your back pocket just in case life has other ideas.

For this reason alone, parents should consider life insurance. The textbook definition of “planning for the worst” a life insurance policy helps ensure that your family is provided for in case of your untimely passing. The agreement involves paying a monthly premium to an insurance company in exchange for peace of mind that the company will pay your beneficiaries if you pass away. For reference check Ethos life insurance policies and coverages since Ethos is a leader in this field. Compare them with other quotes to get a better picture of what is actually offered.

Below, let’s tease out a few specific reasons, based on real-life scenarios, why you should consider life insurance.

It Can Replace a Lost Income

Here’s the big one, the reason most parents gravitate toward a life insurance policy. A family comes to depend on its regular source(s) of income, normalizing a lifestyle that the income bracket allows (a phenomenon sometimes called “lifestyle creep”). But, if that income suddenly vanishes, in the devastating event that one parent passes away, it can be challenging for a family to regain its financial footing.

A single-life insurance policy for the family’s primary earner can help replace that earner’s income if they pass away.

Child Care Costs in the Absence of a Stay-at-Home Parent

There’s a common misconception that only a family’s earner needs to get life insurance. But consider the elevated costs of child-care if a stay-at-home parent passes away. The labor, attention, and education that a stay-at-home parent provides still need to be replaced if that parent passes. And those can be costly to replace.

To prepare for this scenario, couples might consider combined single life insurance policies or first-to-die joint life insurance for couples.

It Can Help Pay Debts and Associated Costs

Life insurance policies can also aid a family during the mourning period. Even as a family grieves the significant loss of a beloved parent, the remaining parent still needs to pay outstanding debts, funerary and burial costs, and account for the loss of income incurred by the grief period.

Having the safety net of a life insurance death benefit can be of great significance in this sad time.

It Can Set Children Up for a Bright Educational Career

Some parents opt for a last-to-die joint life insurance policy (that pays its beneficiaries when both parents pass away) to set their children up for a bright educational career in their absence.

Post-secondary tuition costs are too high for many young people to shoulder on their own. Last-to-die joint policies (any life insurance policy, really) ensure that the kids will have help paying for school, no matter the circumstance.

Hoping for the best is never a bad strategy. On the contrary, it demonstrates an optimistic outlook that teaches children the value of trust and positivity. But hope should always be tempered with planning. Life insurance policies help parents plan for a worst-case scenario through modest, affordable monthly investments in peace of mind.