The thought of dying is an unpleasant one, yet life insurance for parents plays a mandatory role for most Americans. A small percentage of people ever even use a term life insurance policy, but for the times it’s needed, it’s truly a life saver for those left behind.
When parents buy life insurance, they’re not doing for themselves, but for their children, their businesses, or spouses they’ve left behind. No one can replace a life, but the financial side of things still need to be prepared for.
If you’re a parent seeking a life insurance policy, we can help. Though if you are needing other types of insurance such as life insurance while pregnant, we can assist you in finding the coverage you deserve in this area as well.
Life Insurance For Parents
There are some great moments of parenthood: your children’s first steps, their first words, or their first soccer goal or ballet recital. These all create lasting memories for you, and if you’re lucky enough to catch them on video, they can create great fun down the road for your children as well. Unfortunately, a parents death can leave just as powerful as an impact, if not greater.
Will your children remember you positively for having insurance, or will they feel the torment of living without you and without financial security? Life insurance for parents is a building block of a family’s finances, and probably is needed in a large majority of households in the United States.
Life insurance for parents covers things like mortgage payments, putting food on the table, paying debts which could be left behind, or just a rainy day fund for loved ones. It’s something that leaves behind hundreds of thousands of dollars for just a couple bucks per month.
How Much Do I Need?
One place parents get stuck when looking to purchase life insurance is the very beginning. They don’t even know how much to look for, so they’re paralyzed from action. There are a few unwritten “guidelines” in the insurance world, and one of them boils down to making a decision in coverage amount.
Seven to ten times income is the guideline, but each situation is obviously very unique. It might depend on how many income streams there are in the house, whether or not a full income is necessary or just partial, and other considerations. The biggest thing to remember is to not get overwhelmed with how big the number is. Just because someone needs a million dollar life insurance policy doesn’t mean it’s going to cost as much.
Don’t buy too little, but don’t buy too much. Some financial people recommend over-buying in your early years to prepare for the latter, but it may be futile. Having some insurance now is always suggested, even if it’s only a term policy, to cover your needs, but things change and so will your life insurance needs. It’s important that you find the perfect balance between buying enough life insurance coverage, but not buying too much. You may think that it’s better to have too much than too little, and that’s partially true, but you could be wasting hundreds of dollars on coverage that you don’t need.
When deciding how much life insurance that you need, there are several different factors that you need consider that can help you land on a firm number. The first thing to account for is your debts and any unpaid expenses you would leave to your family. Paying off your debt is one of the main purposes of life insurance, make sure that your coverage will be large enough to pay off your mortgage, student loans, credit card bills, and anything else your family would be responsible for.
When you’re searching for life insurance for parents, start with term because it’s very easy and simple to understand. As you get accustomed to owning the policy and your financial status stabilizes, you may want to start looking into permanent insurance to see if it fits both your lifestyle and budget. It’s okay to have both types of policies, and even recommended as long as each serves its purpose.
How Do I Choose A Duration?
The next debilitating aspect for those seeking life insurance for parents is picking how long to lock in a policy for. For some, ten years seems like forever, but for others, 30 years is not at all out of the question.
Its suggested to simply match your duration with your need.
The most common example we use is a mortgage. If you got a 15 year mortgage when you purchased your home, a 15 year policy is plenty. If you decided on a 30 year mortgage for a lower monthly payment, you’ll want to offset it with a 30 year life insurance policy.
Another example might be 5 years until retirement. You might just need a 5 year policy to protect the finances to the day of your retirement so an untimely death won’t delay a retirement which has been worked for your entire life.
If you need life insurance for parents or even for children, contact us and we’ll be happy to assist you further. Our staff is knowledgeable and experienced, and we can find a carrier to suit your needs just right. It’s vital that you find the most affordable insurance coverage to fit your needs. Every insurance company is different, which means that you will get drastically different quotes from companies, even though you would be applying for the same amount of coverage. Each company is going to view your applications through a different lens, which is why it’s important to get quotes from various companies before you choose one. Even if you have more specific questions such as what is declining term life insurance coverage and is it best for me, feel free to contact us for help!
There are thousands of different insurance companies on the market, and several different types of policies, it can be overwhelming trying to decide which is best for you, but we are here to help you. You don’t have to go through the search alone. We can discuss your situation and help connect you to the perfect policy for you and your family.