There are many things that trigger someone into the realization that they should look at their life insurance needs. Perhaps they purchased a new home, got married or had a child. Each of these three life changing dynamics poses a need for life insurance, especially when one has a growing family to support.
Protecting your family with life insurance
I’m sure any parent can attest that having a child changes your life drastically because suddenly there’s another member in your family whose needs must be accounted for. We don’t like to think about, but let me pose this bleak question: what happens to your child if you or your spouse passes away?
Looking at the economics of the world we live in today, it’s easy to see that your child would be greatly impacted. Not only have they lost one of their primary caregivers, but there are other losses as well. The standard of living for most families today is based on incomes from both spouses. If one of these income streams ceases to exist it would put a large financial burden on the surviving spouse as well as the children. It’s easy to see how this loss would impact the family as a whole, so let’s look at another example.
Who should have the policy?
Some families have one spouse who goes to work every day to provide for the family in a financial capacity, while the other spouse stays home and takes care of the children. In cases like this, which parent should have life insurance? I would argue that both should. If the spouse that’s providing the financial support for the family passes away, that income would have to be supplemented.
The stay-at-home parent would probably need to obtain a job and then the children would need daycare or, depending on age, after school care. Unfortunately, these situations end with adding expenses that would need to be accounted for. On the flip side, what happens if the stay-at-home spouse passes? It would provide a similar result. Income is still needed to the parent that has been working in the past. They still need to earn an income, but again some additional care would be needed for the children which adds an expense that wasn’t previously required.
No amount of money will ever account for the emotional turmoil one undergoes when they lose a loved one. In this sense, life insurance is merely a tool to keep the family going forward as they grieve and adjust to a new way of living. It can provide financial stability during a time that is anything but stable. Life insurance can ensure that your children are able to lead a normal life even after you have passed on.
Let SouthPoint Investment Services help you
Here at SouthPoint Investment Services, we want to make sure that you and your loved ones are in the best possible financial situation possible. Death is never easy to talk about, which is why it’s best to be prepared so your loved ones can survive and thrive if you pass away. We would be happy to assist you in your planning.
For more information on life insurance, contact Bob Skillings – Financial Advisors with SouthPoint Investment Services.
Bob Skillings | 706 N German St. New Ulm, MN 56073; 877-794-6712; Direct: 507-233-5624; Cell: 507-217-9038; Fax: 507-233-5601; [email protected]
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