The $30 line item most parents skip, until it’s too late
As a new parent, I often find that the person I am today is different than the person I was before my son came into my life. I know for certain my wife feels the same way about herself, too. It is amazing how much our lives change when we introduce a little human into the family. Once we adopt the title of parents, our priorities and outlook in life shifts. We become more focused on how to make sure our family thrives. We become more aware of potential dangers, and try to plan for financial rainy days.
So now I want you to imagine a scenario where you’re getting ready for work. You go to grab your keys, give your wife and baby a kiss goodbye, and head to work. Trying to get there quickly, you become distracted by the idea of getting to work late. Not paying full attention, during your drive, you change lanes, but avoid turning your head just a little bit more to check your blind spot. Bang! You hit the car next to you. Both cars spin out of control. As you’re desperately trying to regain control of the car clenching the steering wheel, another car hits you square on the drivers side… Your accident becomes another tragic story on the evening news.
None of us can predict when our last day will be. It’s an uncomfortable truth that we’d rather not think or talk about. The scenario above could happen to anyone, and any day could be your last. The question then becomes, how is your family going to get by without you? In the above scenario, imagine this happens and the family had a house, credit card debt, and only $50,000 in the bank as cash. How long would that $50,000 last? Six months? Three months? What happens to your wife and child after the money is depleted? How will your wife manage the household, pay for the mortgage, take care of the baby, go to work to make money, all the while grieving your death at the same time? How long will it take her to stabilize her new terrible situation? Most American families have only $8,000 in savings, not the $50,000 above. Most families would have to downsize after a breadwinner dies. The house would need to be sold and lifestyle would need to change drastically.
Everything you’ve envisioned above can be avoided. Although we can’t predict our last days, we can make sure that our family is prepared when that day comes. What am I talking about? It’s life insurance. So many parents focus a lot on financial stability when going over their monthly budgets. We trim the fat, as the addition of a child brings with it many new costs. However, there’s one topic that most parents try to avoid having, and that is talking about how to prepare in the event of a spousal death. But having that talk, and paying just $30 a month, could protect your family if you were to untimely pass away.
Having this conversation with your spouse is the responsible thing to do. If $30 a month could give you the peace of mind knowing your family will be taken care of, in the event of your passing, shouldn’t you do the responsible thing and get life insurance?
Don't Leave Loved Ones Vulnerable
The absence of life insurance can expose families to significant financial stress that compounds the natural grief of losing a loved one. When a partner passes away, studies show a typical household experiences a dramatic income drop of 33% or more. This sudden financial strain can make emotional recovery more difficult, as survivors navigate not only their sorrow but also an uncertain financial landscape. Children in the family witness this financial struggle, which adds an additional layer of stress to an already traumatic experience. The fear and uncertainty about the future can overshadow daily life, creating an environment where grief is intensified by mounting bills and the ever-present feeling of financial instability. In fact, 4.5 out of every 1,000 households face financial bankruptcy in the year of a spouse's death, illustrating how critical it is to prepare for such an unforeseen event.
The statistics surrounding widowed individuals further emphasize the importance of financial planning and life insurance. Widows represent approximately 25% of the elderly population but account for a staggering 37% of the elderly poor, highlighting the vulnerability many face after losing their partners. The poverty rate doubles from 4% for married couples to 12% for those who are widowed, and more than half of widowed women experience significant financial difficulties, even when some form of planning has been implemented. With 51% of widows living on an income of under $22,000 per year, the risk of falling into poverty is not just a theoretical concern but a frequent reality. Many survivors turn to credit cards to bridge the gap, creating a cycle of debt that could lead to bankruptcy and threaten housing stability. These statistics serve as a powerful reminder of the essential role that life insurance can play in providing families with a safety net, allowing them to focus on healing rather than the financial burdens that can accompany loss.
