If You Have Kids, Here's Why You Need Life Insurance Now

If you’re a parent, few responsibilities weigh heavier than protecting your child’s future. But what happens if you’re no longer around to do that?

It’s a grim question, but one worth asking. Because even if we don’t want to think about the worst, we owe it to our children to plan for it. That’s where life insurance comes in. It’s not just about covering funeral costs. It’s about ensuring your family can continue living, learning, and growing—even if you’re gone.

Why Life Insurance Is Essential for Parents

Let’s start with the uncomfortable truth: If something happened to you or your partner tomorrow, could your family afford to maintain their current lifestyle?

For many families, the answer is no. That’s why life insurance exists, so that your children are not forced to sacrifice their home, education, or stability during one of the most devastating periods of their lives.

Unfortunately, many parents assume that government support, like Social Security, will be enough. But that’s a dangerous misconception.

According to the Social Security Administration, surviving children of a deceased parent may be eligible for monthly benefits. The average? Around $1,100 a month per child (up to a family cap) until they turn 18. That’s not nothing, but let’s be honest: It barely covers groceries, let alone rent, childcare, and everything else.

And here’s the kicker: survivor benefits are tied to the deceased parent’s work history. If the parent didn’t work long enough or didn’t pay enough into Social Security, those benefits may be limited or unavailable. Even for those who qualify, relying solely on the government is risky, especially given widespread concerns about the future of Social Security itself.

So what’s the solution? Affordable life insurance.

The Two Main Types of Life Insurance

There are two primary types of life insurance you need to know about: term life and whole life. They are very different—and only one is recommended for most families.

1. Term Life Insurance

Term life insurance covers you for a set period of time—typically 10, 20, or 30 years. If you pass away during that term, your family receives a payout, called a death benefit.

It’s straightforward, effective, and inexpensive. In fact, a healthy 30-year-old can get a 10-year, $500,000 term policy for as little as $20 a month. Some employers even offer basic term life coverage for free or at a reduced rate.

That $500,000 can make all the difference for your partner and children—paying off the mortgage, covering childcare costs, and maintaining their financial security while they grieve and rebuild.

2. Whole Life Insurance

Whole life insurance lasts your entire lifetime and includes an investment component called "cash value." Sounds good, right? Not so fast.

Whole life policies are dramatically more expensive—sometimes 10 to 20 times the cost of term life for the same coverage. And while the investment component may sound appealing, it often comes with high fees and underwhelming returns. In short, it’s an expensive and inefficient way to invest.

Ethical financial professionals overwhelmingly recommend term life insurance for working families. Save the investing for your 401(k), IRA, or brokerage account—where you have more control, lower fees, and better long-term growth potential.

Buy Insurance for Insurance—Not Investing

Don’t let sales tactics confuse you: life insurance should be about protection, not profit.

If you’re in the midst of raising kids, you don’t need a complex investment strategy tied to an insurance product. What you need is a simple, affordable safety net that guarantees your children and spouse can continue living with dignity and stability if the worst happens.

As highlighted in Life Insurance: A Comprehensive Guide for Couples, life insurance should be part of every couple’s financial planning conversations. It’s not just about you—it’s about them.

Take Action Today

Life insurance isn’t something to procrastinate on. The earlier you get it, the cheaper it will be, especially if you’re healthy. Every month you wait, you risk higher premiums or the possibility of being uninsurable due to health changes.

And remember: Social Security is not a substitute for life insurance. Even if the benefits stay intact (a big “if”), they simply won’t be enough.

So do this for your family:

• Get a quote for term life insurance today.

• Review your employer’s life insurance benefits.

• Talk to a licensed, fee-only financial advisor if you have questions.

  
  

Your kids are counting on you, even for what they can’t see coming.

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