In celebration of Life Insurance Awareness Month, how about a pop quiz? It’s only one question:
Who needs life insurance?
If your answer is “almost everyone,” you’re correct!
If your answer looks a little different, you’re not alone. Many people answer by describing the stereotypical candidate for life insurance: a middle-aged breadwinner who’s married, has kids and owns a home.
But the truth is, almost everyone needs life insurance coverage, including these four surprising people:
The stay-at-home parent
Even though you’re not bringing in income, you perform a host of valuable services such as childcare, cooking, housecleaning and household management, which can be costly to replace for a surviving partner. The average weekly cost of childcare alone is $196 for one child at a childcare center; for a nanny, you’re looking at $556 a week.1
A young, healthy person
You may think you don’t need life insurance if you’re young and healthy, but your youth and good health will help you lock in low premiums and enable you to buy more coverage than you may be eligible for a few years down the road.
The single person
Many assume life insurance is only for married people or those who have kids, but if you’re single and have student loan debt, it’s a good idea to have life insurance in case something happens to you. The high cost of funerals is another consideration for the single person. It’s not fun to think about, but the median cost of a funeral with viewing, burial, and vault is $8,755—a cost that someone will have to pay for.
Even if your financial obligations have ended, life insurance can be a powerful tool to make your retirement more secure. Plus, life insurance can make it easy for you to leave a legacy for your loved ones. Policy proceeds are generally income-tax free and paid directly to your beneficiaries.
Life Insurance Awareness Month is the perfect time to consider life insurance for the first time or revisit your coverage and ensure it still meets your total needs. Contact your Bankers Life agent or reach out to us here to learn more.
1Time, This is How Much the Average American Spends on Child Care, http://time.com/money/4444034/average-cost-child-care/, August 9, 2016.
2National Funeral Directors Association, Funeral Statistics: Costs, http://www.nfda.org/news/statistics, 2018.