By Amanda Eyles, Hefren-Tillotson Insurance Specialist
When you’re first starting a family, you face perhaps the most daunting financial pressures you’ll encounter at any stage of life. Expenses, like a new home and young children, weigh heavily on you, and it’s likely you’re still early in your career, far from your peak earning potential.
Meanwhile, you need to begin saving for the future too: college for the kids, and a nest egg for you and your spouse. They may sound like they are a long way off, but they’re not.
Protection is Not Expensive; it’s Priceless
The reality is no one can survive without having different types of insurances. The first step is to ask some tough questions:
1. What would happen if you or your significant other passed away?
2. What would you want to provide for your family if you were no longer here?
3. Would you want your family to be able to maintain the same lifestyle if you were gone?
A premature death is devastating to your family’s financial health. This is where owning life insurance is a practical solution. People do not always like life insurance, which may be an understatement, but they like what it does for the people they care about most.
You do not need to love someone to have auto insurance, it is the law to carry coverage, but you need to love someone to own life insurance.
It is somewhat disconcerting that in this day and age, 33 percent of Americans say they don’t have enough life insurance, including one-fourth who already have a policy. The sole purpose of life insurance is to provide money for the family. And to make it easier, there are only two main categories: cash value policies and term policies that provide no cash value.
Life insurance can provide your loved ones with the resources needed to maintain their lifestyle if you passed away prematurely. It can replace some or all of your income, pay off debts, cover funeral costs and can even help fund longer-range needs like college tuition or retirement.
Insure your spouse or partner as well, even if he or she doesn’t work outside the home. A stay-at-home parent provides vital household services—childcare, house upkeep and transportation to name a few—that would be expensive to replace.
Reach out to your Hefren-Tillotson advisor today, to begin the process of determining the best needs for you and your family.