17
Jun-22
As a dad, you have many responsibilities. Protecting your little ones in every way possible is a top priority. You won’t be around to protect them forever. But you can plan ahead to ensure if anything happens to you, your family will still be okay. Life insurance is one of the best ways to financially protect your loved ones from the unexpected. You hope to live a long, healthy life watching your child grow, but what if?
Why Dads Need Life Insurance
It’s your responsibility to protect your family. Your family relies on your paycheck to live. And life insurance is your family’s safety net. If the unthinkable were to happen, and you were to pass away unexpectedly, your family loses your income while still responsible for a variety of expenses. A term life insurance policy provides a tax-free lump sum cash payout to your family, known as a death benefit. This can help cover end-of-life expenses such as:
Funeral and Burial Costs – Your funeral and burial may cost your family up to $10,000 depending on the type of funeral that they select (or that’s stated in your will).
Legal Fees and Probate Costs – Your family may have to pay probate costs, based on how your will is structured. These fees may be up to 8% of the total value of your estate. Legal fees from any attorneys managing other duties related to the administration of your estate can also be costly.
Your Medical Expenses – Dying prematurely may bring large hospital bills. Whether death is caused by a serious health condition, such as cancer, or an accident, you and your family will have tried everything possible to increase your chances for survival, which likely means expensive doctors and procedures.
In addition, a term life policy will:
Maintain your family’s standard of living.
The loss of your income can have a devastating impact on your family’s standard of living—but it doesn’t have to. Your term life policy can provide a replacement for lost income for your family for a term that you select, allowing them to avoid financial burden as they manage their grief.
Shield them from the negative impact of personal debt.
It’s not uncommon for young parents to be paying off their college tuition. If you have private student loans, then they may not be discharged after you are deceased.
Your creditors may sue your estate for the balance of your loan (or your co-signer) if your loved ones are unable to make payments.
Other consumer debts—such as credit card debt and car loans—may also remain active. Your life insurance policy can pay off these debts or cover payments, allowing your family to remain financially secure.
Provide a financial cushion for your children, as well as pay for their education.
You and your partner may have plans to cover your child’s college tuition. A portion of the life insurance death benefit can also go to the college savings fund. Anything left over can go to the emergency savings account.
source: https://www.quotacy.com/the-importance-of-life-insurance-for-dads/