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No Children, No Life Insurance, Big Problems

No Children, No Life Insurance, Big Problems


Many married and cohabitating couples don’t consider buying life insurance until they have children. Sadly, they don’t realize what a vulnerable position this leaves their spouse, partner and parents in.


Considering the Average Funeral Costs


According to Fox Business, in 2013 the average funeral cost more than $6,000. Cremation, a generally cheaper option, averaged $3,200 in the same year. Many couples are not prepared to cover these costs without potentially dipping into retirement savings, an act that can create penalties and tax ramifications, not to mention the fact that borrowing from retirement funds can limit your potential growth and put the future of your retirement in jeopardy.


Life Insurance: It Covers More Than Funeral Expenses


While funeral, burial and cremation expenses are a valid concern and a good reason to get life insurance, they aren’t the only overwhelming expenses you and your partner face when one of you passes away. Any joint debt you both have including a mortgage, auto loan and credit card bills becomes the responsibility of the surviving spouse or partner. Additionally, any loan or credit that the surviving partner cosigned for you becomes their responsibility. This can include student loans, which are often very overwhelming.


Even if you and your partner or spouse kept all of your finances separate, your parents might have cosigned for certain debts with you, and a life insurance policy can help them pay those off after your death.


Locking in Rates When They’re Low


The benefits of having a life insurance policy are numerous, but since we’ve got limited room in this blog post, I’m just going to mention just one more. The rates for your policy are based on your age and health when you first apply. The longer you wait to get life insurance, the higher your premiums are likely to be. Therefore, if you plan to have children, locking in lower rates now could help your budget tremendously in the future.


A life insurance policy is a valuable tool for every financial plan and each stage of your existence. Meet with an agent to find out what uses and benefits it can add to your life.

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