Did you know parents will spend about$245,000 raising a childto adulthood?
Youve considered the costs and planned ahead.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Do you oughta Consider Life Insurance?
Perhaps its due to a sense of invincibility, or maybe a notion that life insurance is forourparents.
You dont want to talk about it.
Self-care is quite a lot of work.
Youre responsible for kids now, and maybe even the well-being of your partner.
Plus, its actually smart to buy when youre young.
Typically, youth and excellent health go hand in hand, SoFi Product Marketing Manager Marcos Fernandez told Sykes.
Simply put, life insurance protects your dependents if you die unexpectedly and they lose your income.
It could cover their cost of living or just funeral costs.
Either way, its meant to keep your family from worrying about money during a difficult time.
Jay Ferrans, president ofJM Financial & Accounting Servicesin Southfield, Michigan, suggests life insurance can benefitanyonewith dependents.
Without dependents, you typically dont need it.
Beards wife is a stay-at-home mom.
If hes not around, he wants her to keep her job.
So I have built a pile of I love you money that should allow her to do just that.
For $30 a month, Beard would leave his wife $772,000.
For this frugal family, that means she and their kids could maintain their lifestyle.
Thats a GREAT deal.
And its a deal your family will be grateful to have if they need it.
Nobody plans to die, Ferrans says.
… You really need to prioritize whats important in your life.
The bottom line, he says, is you purchase life insurance based on what youre trying to accomplish.
Many employer-based term-life policies are valued at around one to two times the employees salary.
Yet, the industry recommends life insurance coverage of seven to 10 times annual pay.
Your plan also may not follow you if you leave your job.
Private life insurance, which isnt tied to your employment, sticks with you regardless of your employer.
How Much Does is Cost to Buy Life Insurance?
Term life insurance covers you for a set period of time, usually between five and 30 years.
Its designed to pay out a set benefit to your beneficiaries in case you suddenly die.
The length of the term you sign up for depends mostly on your age and your dependents age.
Thats $500,000 about 10 years average salary for less than $200 a year.
The software process is also less cumbersome than it once was.
Is it Worth The Cost?
My favorite motto is expect the best, but plan for the worst.
Of course you dontexpectto die you know, unexpectedly.
But life insurance lets your family know you have aplan,just in case you do.
Lets be honest: We all spend $15 a month on much less valuable stuff.
One lunch out with coworkers.
An HBO NOW subscription.
The latest paperback novel.
And you canget a quote in about two minutes.
Its a pretty small price to pay for your familys peace of mind.
As Beard says: I love you, honey.
Your Turn: Will you buy life insurance for your family?
Dana Sitar (@danasitar) is a staff writer at The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
