Tips on Considering Life Insurance for the Whole Family
Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Choosing a Life Insurance Plan and other Life Insurance topics.
Why Consider Life Insurance for the Whole Family?
Life insurance isn't just for those employed outside the home. Use the following tips to determine if a life insurance policy is appropriate for family members that do not earn wages.
Tip 1. Life insurance is an Important Investment for the Whole Family
- Most of the concern with life insurance is replacing the income of the policy holder. Life insurance can be an important financial decision for family members that do not earn income, too. For example:
- Stay at home moms may not earn income, but family members should be mindful that someone will have to assume those duties in mom's absence. Chances are that the family may have to employ someone to care for the children and manage all the responsibilities of the household.
- When calculating how much life insurance is needed, policy holders should calculate the annual value of all the work performed. That figure should be multiplied by the number of years mom would have been at home with the children to arrive at the policy amount. Some policy holders may want to include final expenses in the life insurance plan.
Tip 2. Life Insurance Can Be an Estate Builder for Children
- It can be especially difficult to consider life insurance for a child. Hesitant parents should be aware that certain types of life insurance can be an investment in a child's future. In these cases, parents should focus their life insurance purchase on creating options for the child's future rather than the worst case scenario.