Staff Report
Some of the things life insurance can do is to help pay off debts and loans, providing surviving family members with the chance to move on with a clean slate. It can keep families in their homes and pre-fund a child’s college education. It can provide a stream of income for a family to live on for a period of time. There’s just one small catch. You need to own life insurance.
“Life insurance should serve as the foundation of a family’s financial plan, helping to ensure that loved ones will be alright financially when that tragic day occurs,” said Hank Mart, Financial Services Representative from Melissa Snively State Farm.
Protecting the Stay-at-Home Spouse
When married couples have young children, often one spouse stays home while the other works outside the home. Most parents understand the necessity of purchasing life insurance on the income earner; few realize the importance of also insuring the stay-at-home spouse.
Prepare for the Unexpected
What if the stay-at-home spouse suddenly died prematurely? The family would be devastated. In most cases, friends and family members initially pitch in to assist the remaining family members, but eventually they do have to return to their regular lives. Before the surviving spouse could even go back to work, a caretaker for the children and household would need to be hired, presenting a potential financial hardship. If life insurance is purchased on the stay-at-home parent, the family’s needs can be protected.
Measuring the Value of the Stay-at-Home Spouse
Despite the importance of the stay-at-home parent, there’s little research to quantify its value. In its May 8, 2008, Mom Salary Survey, Salary.com reported the ten most popular functions performed by mothers equates to $116,805. It further states the stay-at-home spouse works approximately 94-hour per week, serving as housekeeper, accountant, cook, psychologist, driver, childcare provider and overall household manager — in short, functioning as a CEO at home.
Flexible, Customizable Choices
The type of policy you select depends on your needs and budget. Term life insurance provides affordable coverage for several years. In contrast permanent life insurance provides protection for your entire life (provided premiums are paid) and accumulates cash value tax-deferred. This cash value can be accessed if needed (unpaid loans do accrue interest and reduce policy’s cash value and death benefit). Plus, riders, available with term and permanent life insurance, enable you to customize your policy to meet and grow with your changing needs.
For additional information on the information, please contact Mart at hank.mart.tjgr@statefarm.com or call 662-3622.
