Many single people have no dependents, therefore, they can get away with a modest insurance policy that will cover their funeral expenses when they die. But when you get married, buy a house, and become a parent, your lifestyle expenses mount. There’s a lot to think about and to pay.
Here are just some of the expenses you’ll want covered for your spouse and children. Insurance can help take care of it all.
- Credit card debt: In many states, credit card debt becomes the responsibility of the surviving spouse. Your insurance policy should cover your debt.
- Mortgage: Paying off your mortgage with your life insurance policy gives your surviving spouse and your children one less worry.
- Childcare: Are you the primary caregiver for your children? Insurance should cover childcare expenses if your spouse continues to work.
- Your salary: In a double income home with children, insurance should cover your salary so your spouse and children can maintain their standard of living.
- College: Alleviate another burden for your family if you have children and purchase enough insurance to cover the rising costs of college education.
- Your funeral expenses: This is the expense most people think of when they consider life insurance, and certainly, it is one of the basics. The average cost of a funeral in 2009 was approximately $6,500 according to the National Funeral Directors Association. You’ll want to have more than this set aside in your insurance policy to cover rising costs.