You never know how much money it takes to just live your life. Some of the most eye-opening costs include raising a child, providing an income for your family’s needs, or covering other unexpected expenses.
If you are thinking of having a child or are raising one, it may be startling to know that the cost of raising a child is $233,6101 for the average middle-income family. This large number may be surprising to new parents who want to ensure proper financial planning when raising a child.
Did you know that the average household debt is $115,0002? The average American acquires this amount when combining mortgage and personal expenses, such as credit card debt. It is important to be aware of the financial liability you accrue and how this impacts your life insurance needs.
The average American will earn $1,700,000 during his or her lifetime3. That seems like a lot, until you factor in the cost of living. The cost of living expressed in the previous two examples (raising a child and average household debt) accounts for about 25% of the earned income.
Now that you have an idea of what some of these major expenses cost, consider how your loved ones would pay for them if you were no longer here. Life insurance can help you ensure that your loved ones could cover these expenses.
Understanding your financial obligations can help ensure that you are not underinsured. It is always a great time to take a moment and think about your own life insurance needs.
Of course life is a journey filled with adventures and unknowns, but it does not mean that you cannot be prepared for the unexpected.
1Expenditures on Children by Families, 2015, U.S. Department of Agriculture. \
2 Koehn, Nancy. “Devoted to Debt.” Harvard Magazine. July-August 2011. Average American household debt, first quarter 2011.
3 The College Payoff, Georgetown University Center on Education and the Workforce, 2011.
Be honest. Do you procrastinate when it comes to things that you know you should do? Join the club!
Amy McNeely experienced firsthand how important having life insurance can be when faced with the sudden loss of a family member.