This may seem like an obvious reason to have life insurance, but it is extremely important to make sure that your loved ones are provided for in the case of a tragedy.
In 2014, the median household income was $53,8911
College Costs for Children
The cost of sending a child to college is increasing every year. Life insurance may be a way to fund your children's college education.
The average cost of private four-year college is $42,419 per year2.
The average cost of public four-year college is $18,943 per year2.
Value of your Services at Home
These services can range from child care to mowing the lawn. It is any service that would need to be replaced if you were no longer there to provide it.
Your services at home are often overlooked. If paid, a stay at home parent would earn $118,905 annually3.
Final Expenses
Final expenses are something no one wants to think about, but they can add up quickly.
The average funeral cost today is between $7,000-$10,0004.
Debt (Mortgage, Credit Card, etc)
Life insurance death benefit proceeds are federal income tax free, and may pay off or reduce any outstanding debt.
The average American home mortgage debt is $155,1925.
The average credit card debt per household in the United States is $15,6115.
Employer Provided Benefits
Any employer sponsored life, health, or disability insurance benefit may have to be replaced in the event of a tragedy.
Over the past decade, health care premiums have risen 89%6.
These are just a few factors that may go into determining your life insurance needs. Remember, the best way to make sure your life insurance needs are met is to meet with a financial professional who is a qualified life insurance agent.
