Auditoria Democratica

As parents, it is hard to imagine leaving a child orphaned and/or financially destitute. In these extremely difficult economic times, it is also an absurd idea to spend money on an intangible piece of paper that only produces a benefit in the event of a death. Even with these two scenarios, having a life insurance policy is paramount to the well-being of a child, and even more important than the college fund that is normally started at the birth of a new family member. The responsible parent not only has to face the fact that a child will grow up and need money to start their lives, but that their children may have to do it without them in the tragic case of their most invested caregiver's death.

Life insurance can be expensive, especially if one waits until they have any sort of risk factor due to age or lifestyle to acquire a policy. Generally, if a parent wants to protect their family in the untimely event of their death, a younger and healthier candidate will have access to better insurance at the cheapest rates available. There are many different types of insurance available that will protect a family in different ways.

Some parents only want to pay for a large death benefit while their children still live at home. This type of policy would replace the income of the decedent for a number of years, cover all funeral expenses, and possibly pay for their children's education as well as miscellaneous expenses incurred during the lives of their young families. This type of policy is purchased for a term of years, specified at the time of issuance. At the end of the term, it is expected that the amount of the death benefit is no longer needed, and new terms would need to be negotiated based on the insured's needs at the time.

This type of policy is the most inexpensive way to protect a growing family in the event of a death. Different options are available to assist a parent if they become disabled as well. Most policies have options that will allow premiums to be waved in the event that they cannot earn an income due to injury or illness. Some companies will also add a spouse and child rider to the policy, so that they too have a death benefit without the purchase of separate policies. Other life insurance options are available, and a licensed agent in the state of residence is normally the best outlet for determining the needs of a growing family in regards to certain investments and policies. For instance, they have tools specifically designed to calculate the amount of money that will be needed to keep a family comfortably living the lifestyle they are accustomed to after the tragedy of death.

According to USA TODAY, an article written by author Sandra Block states that "Only 44% of households have an individual life insurance policy, and 30% have no individual or employer-provided life insurance, according to a recent survey by LIMRA, an industry-sponsored group. Some 11 million households with children younger than 18 - viewed as families with the greatest need for coverage - have no life insurance." In this same article, it is noted that the three main reasons for not having sufficient coverage can be attributed to procrastination, the economic downturn and the availability of licensed insurance agents. Agents who used to advise consumers on investments and insurance are finding different career paths, as the sale of these products are in such a decline that they can no longer make a decent wage.

These statistics sadly point out that more than 11 million households would be devastated in the event of a parental death. Currently, the average family reports that the financial struggle of living paycheck to paycheck has devastated their savings and forced families living on one income to resort to two incomes or the aid of government assistance just to make ends meet. These families agree that they cannot afford to pay the premiums for a policy that will protect their loved ones if they were to die. In fact, most younger parents see death as something that will happen when they grow old and infirm. A sense of infallibility is imbedded within young people, only dissipating when they start to lose their own immediate family or close friends.

The truth is that death can happen anytime. Children who live in loving homes can become orphans or lose the lifestyle that they have been raised in. They could have to abandon all hope of the college education their parents had envisioned for them, and possibly have to rely on relatives who are not prepared to take on the extra burden of an indigent child. The tragedy of death is exacerbated in families who are financially unprepared for the loss of a bread-winner. Even the stay-at-home parent who contributes to a household through upkeep and hands-on parenting has a value that is irreplaceable without preparation. As a parent, the greatest responsibility to a child may seem like the one that is financially impossible to realize. However, by researching insurance options, protecting a family is an affordable achievement.