Page 58 - Book5E

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Understanding Your Life Insurance Policy
will be provided for financially, even if you’re not there to care for them yourself.
The Washington, D.C.-based Life and Health Insurance Foundation for Education has outlined the following scenarios to help you under- stand how life insurance might apply to your particular situation.
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You’re Married—Most families depend on two incomes to make ends meet. If you died suddenly, could your family maintain its standard of living on your spouse’s income alone?
You’re a Single Parent—As a single parent, you’re the caregiver, breadwinner, cook, chauffeur, and more. Yet nearly 40% of single parents have no life insurance whatsoever, and many who do have coverage say they need more.
You’re a Stay-At-Home Parent—Just because you don’t earn a salary doesn’t mean you don’t make a financial contribution to your family. Childcare, transportation, cleaning, cooking, and other household activities are all important tasks, the replacement value of which is often severely underestimated. Some surveys have estimated the value of these services at over $40,000 per year. Could your spouse afford to pay someone for these services?
You’re Single—Most single people don’t need life insurance because no one depends on them financially. But there are exceptions. For instance, some single people provide financial support for aging parents or siblings. Others may be carrying significant debt that they wouldn’t want to pass on to family members who survive them. If you’re in these types of situations, you should consider owning life insurance because you wouldn’t want your loved ones to be burdened financially in the event of your premature death.
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