Cover the Risk of Having Only One Parent Making All of the Family Income

Article by Jill Pace

Our term life insurance policy is meant to cover the “temporary” risk of having only one parent make all of the family income. It is for the benefit of the children we plan to have, starting with the son who will be born this fall.

When I think of long term financial planning I think of investment in stocks and real estate. Bob and I have a plan and a strategy for such long term investments. I guess it is, at this point anyway, the stock options he has at work that will vest over the next five years and the house we own which will be paid for in a little under 30 years. To us the purpose of our life insurance is to provide money for bringing up our children if Bob should die before they are grown.

We have a term life policy because the term rates were so much cheaper than any other version of insurance we found. Beside comparing insurance types, we got term insurance quotes from more than a hundred insurance companies. We looked at varying amounts of term insurance coverage and different lengths of policy term with each of the companies. The process didn’t really take much time because we used the internet for most of our research. Since we wanted the policy to cover the time period that we would have children at home at part of our financial responsibility, we selected a 30 year term insurance length of coverage. Even though we decided to take on a new monthly payment we still were budget conscious and the right insurance for us was the cheapest term insurance quote we found. Neither of us think there is much difference in going with one insurance company over another. The only difference would have been if we liked one company’s agent better, but since we purchased online there wasn’t really any agent.

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