There may be no greater life event than having a child. As a parent, it’s only natural that you feel a great sense of responsibility along with incredible joy and love for this little person who is going to become such a big part of your life.

Parents need protection

Life insurance should be considered for parents regardless of whether they earn an income outside of the home or not. If you are the primary wage earner have you considered what would happen if you were to suddenly be diagnosed with a critical illness, or worse? If your income stopped would there be money to pay for housing or post-secondary education? And if you are a stay-at-home parent and were to become ill, or worse, would there be money available to pay someone to do all of the work you currently do from shopping and cooking to cleaning and childcare. This is where life and critical illness insurance can help.

How much life insurance do you need?

That depends on a few things such as: How much your family spends annually on items like housing, food, and clothing.

• How much it would cost to pay off existing loans and debt like credit cards or a mortgage
• How much your family would need to cover large limited time expenses, such as your children’s post-secondary education
• How much your family would need to cover your final expenses – funerals, taxes, etc.

How far will an amount like the $50,000 group policy at work go when you consider what’s left behind for your loved ones: the loss of your income and mostly likely debts and bills. What about things like rent or mortgage, child-care and education costs?

We generally recommend 10 times your annual salary.  $50,000 a year equates to $500,000 in minimum coverage.

Things to consider:  

• Funeral costs of $20,000 is not unusual
• Time off work to console family and grieve – 1 month, 6 months maybe a year?
• Once the remaining partner goes back to work – child care costs $$5,000 a year
• Future education for 2 kids – $100,000
• Income replacement from spouse that passed:
  • $500,000 x 1% = $5,000
  • Need 60% of $50,000 to keep bills paid? ( $30,000 annually)
  • $500,000 X 6% = $30,000
  • 10 years of income maybe?

Now, if you’re a bit overwhelmed with this information and perhaps don’t know where to start, just know that a I will sit down with you at no cost to go over your needs and help you get life insurance coverage to fit your budget.

Remember, the I can help you make sense of the confusion and get you on track for the financial future you want — with the protection your loved ones need.

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