Life Insurance Can Cover Your Family Through Every Stage
BY PEKIN INSURANCE · JAN 3, 2020 ·3 MIN READ
Time travel. That’s the only way to explain how the years disappeared. In the blink of an eye, a carefree teen changed into an adult with a house, a committed partner, and a family.
Don’t worry! From stacks of diapers to mortgage payments, life insurance can cover your family through every stage.
If you’re not there to support your loved ones, life insurance can take care of:
- House payments
- Utilities
- Home maintenance
- Childcare
- Car payments
- College tuition
- School supplies
- And more!
A Closer Look at the Family Life Cycle
The C.S. Mott Children’s Hospital says THE FAMILY LIFE CYCLE HAS FIVE DISTINCT STAGES:
- Independence
- Coupling or marriage
- Parenting: babies through adolescents
- Launching adult children
- Retirement or senior years
Are you living in stage three or approaching stage four? Let’s talk about life insurance and how it could help everyone who depends on you.
How Your Home Costs Add Up
The Balance says THE AVERAGE MONTHLY MORTGAGE PAYMENT falls somewhere between $1,022 and $1,505. You fork over the money for home upkeep, too.
THE COST FOR MAINTAINING YOUR HOME depends on:
- Where you live and the weather in your area
- The age of your house
- How many pets you have:
- You might need to REPLACE FILTERS and carpet more often.
- How many children you have:
- Kids have been known to color on walls and throw baseballs through windows.
You have to keep the electricity, water, and other utilities running, too.
Move.org says AVERAGE UTILITY COSTS in the U.S. total $398.24 per month:
- Electricity: $110.76
- Natural gas: $72.10
- Water: $70.39
- Trash/recycling: $14
- Internet: $60
- Cable TV: $85
Have you done the mental math? Or, do you have these totals saved on a spreadsheet?
Either way, life insurance can cover mortgage payments, monthly maintenance costs, and utilities.
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A Big Understatement: Childcare Is Expensive
According to Child Aware of America, CHILDCARE COSTS MORE THAN COLLEGE TUITION IN 28 STATES. Their study includes center-based daycare and family-based care.
Over 70% of families spend more than 10% of their income on children, according to the CARE.COM 2019 COST OF CARE SURVEY
We’ll drop the stats for a second. Think about what your family would do without you. It’s probably something you don’t like to dwell on.
That’s where life insurance comes in. It helps your loved ones pay for ongoing education and development, whether it’s daycare or college.
College Won’t Get Cheaper
Speaking of college, have you paid off student loans? Will you foot part of the bill for your children’s college education?
Forbes says THE COST FOR ATTENDING UNIVERSITY HAS INCREASED NEARLY EIGHT TIMES FASTER THAN WAGE GROWTH between 1989 and 2016.
Don’t bet on tuition and fees dropping anytime soon.
The COLLEGE BOARD COLLEGE PRICING REPORT shows the yearly costs for four-year universities:
- Average in-state tuition and fees for public four-year sector: $21,950
- Average out-of-state tuition and fees for public four-year sector: $26,820
- Average tuition and fees for private four-year institutions: $36,880
You can have your kids apply for every scholarship or tell them FAFSA is their best friend. Should you have a backup plan, though?
Life insurance can wipe out student loan debt. Your coverage amount could account for college tuition and fees, too.
What About Trade School?
College isn’t for everyone.
Trade school offers lower tuition and more job-specific training. Plus, most of their programs take less time to complete.
Trade school degrees could lead to the following careers:
- Welder
- Chef
- Graphic designer
- Plumber
- Electrician
Still, THE AVERAGE TRADE-SCHOOL DEGREE COSTS $33,000, according to Hub & Spoke.
You probably know what we’ll say next. You guessed it! Life insurance could help pay for trade school.
From Clunkers to Luxury Vehicles
Don’t confuse a car payment with the total cost to own a vehicle. Nerdwallet says $8,649 IS THE AVERAGE OWNERSHIP COST FOR VEHICLES DRIVEN 15,000 MILES PER YEAR.
Even if your kids drive family hand-me-downs, someone has to pay for:
- Gas
- Registration and fees
- Car insurance
- Oil changes and maintenance
Your family fleet might have a bigger price tag than you thought, but life insurance can cover the costs of vehicle ownership.
Closing the Chapter: Your Final Expenses
When you’re gone, you’re gone. How do you want to be remembered?
You could cover all your final expenses with life insurance.
Here are average prices for traditional and cremation burials from the 2017 NATIONAL FUNERAL DIRECTORS ASSOCIATION (NFDA) REPORT:
- Non-declinable basic services fee: $2,100
- Removal and transfer of remains to funeral home: $325
- Embalming services: $725
- Other preparation of the body: $250
- Use of facilities and staff during viewing: $425
- Use of facilities and staff during burial: $500
- Hearse vehicle: $325
- Car or van services: $150
- Basic memorial printed materials: $160
These expenses add up to $4,960.
Now, we’ll take a quick look at the average price differences between cremation and a traditional burial.
Cremation:
- Cremation fee (if using a third party): $350
- Cremation casket: $1,000
- Urn: $275
Traditional:
- Metal casket: $2,400
- Cemetery vault: $1,395
The average cremation costs $6,585, while the average traditional burial with a vault costs $8,755.
Variations on the Family Life Cycle
Everyone follows a different path in the family life cycle. Sometimes, relationships don’t work out. You could adopt a child or become a foster parent.
No matter what road you drive down, life insurance follows you and your loved ones through every twist and turn.
