21st Century Dad
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Life Insurance and Your Family

September 23rd, 2010 . by 21st Century Dad
Disclosure: I received a packet of educational information and a gift card from The LIFE Foundation before writing this post. The opinions and ideas expressed are my own.

Photo courtesy of Ron Sombilon Gallery through a Creative Commons license

Photo courtesy of the Ron Sombilon Gallery

September is Live Insurance Awareness Month. September is almost over. Where did the time go? Just because Life Insurance Awareness Month is about to pass, it doesn’t mean we can stop thinking about it.

As a single man, I never gave a second thought to life insurance. Who would benefit from it? I wanted every penny of my paycheck that I was entitled to so I could spend it on fun things. Living in an epicenter of scam artistry raised insurance premiums all around. I had contentious sentiments toward the insurance industry. I only wanted the minimum to stay in the good  graces of the law.

All that changed after Twilli was born. I know how important it is, but I dragged my feet (and other body parts). I wondered where I would find the money in my already tight budget for a life insurance premium.

How to Buy Life Insurance

Guitar Center offers a basic policy at no extra charge as part of their employee benefits package. It’s kind of like Pro Coverage, but for you. It comes out of my paycheck, pre-tax, so it’s an even better deal. I didn’t hesitate to sign up. Your employer is the first place to go when you are looking for a life insurance policy. Group rates are available and you won’t have to answer any questions about your health.
If your employer does not offer life insurance, you may still be able to purchase a plan through your employer while bearing the entire cost yourself. However, you may have some of the same advantages as buying into an employer-provided group plan.
If neither option is available to you, a qualified professional can help you select a level of coverage appropriate for you. Be sure to get a referral from someone you trust. Another great source of life insurance might be your current insurance carrier for your homeowner’s or auto insurance. Your insurance agent will gladly inform you of all the discounts you are entitled to for holding multiple policies.

Life Insurance and the Stay-At-Home Parent

Many parenting blog writers and readers are stay-at-home parents. You may not have an income to replace, but what you provide for your children is so valuable. Think about how much you really do as a stay-at-home parent! What would it cost to add childcare, transportation, and a housekeeper? Stay-at-home parents don’t get enough credit for what they do. They often don’t get enough life insurance coverage either.
Salary.com conducted a study in 2006 and put the figure of $134,121 if you consider the responsibilities of a stay-at-home parent and account for an average of 60 hours of overtime per week. Even if you only compensate mom or dad for a 40 hour work week, it would still cost $45,697 to replace those services.
Note: Updated figures are posted here.

Where to Go For More Information

If you are on the fence and want to jump off, talk to someone you trust and visit some of these sites:

One Response to “Life Insurance and Your Family”

  1. comment number 1 by: Jaymi

    This is a great post. I especially enjoyed your points about stay-at-home parents. 🙂

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