September is Life Insurance awareness month. Recently I was asked “Why does a stay at home parent need life insurance?” I felt this would be a good opportunity to get your family to think about what you may need if the unthinkable happens. Here are a few things to think about when discussing your need.

1- Loans. Do you currently have a car loan? Do you have a home equity line? Does that spouse still have student loans? By having the money to pay these smaller loans off the family will have additional monthly income for the new expenses such as child care.

2- Final expenses. A funeral these days costs about 10,000. Depending on where you would want to be buried and how could depend on how much cash you have on hand. After losing a spouse would you want to make those decisions based on what you can afford or how you want them remembered? 10,000 is not a bill that most of us could pay for immediately, life insurance comes to the beneficiary tax free and you can use it however you need to.

3- The surviving spouse will need to take time off work to readjust the family and take the time to grieve. You must take time away from work to help your children adjust to life without the parent. Even after the grieving time, losing your partner would take you away from work more than you would think. There are school functions, wellness check at the doctor and the dentist, and there will be some days your child can’t go to school.

4- Education. Would you want to leave money so the surviving spouse or children can go to college?

5- These days there are homes where children may have different parents. If the biological parent died, would the spouse continue to raise the child? Would the other biological parent decide they now want the child. Court costs would be another reason to think about having additional coverage.

My agent friend just delivered a check last month to a family who lost the mom at age 41 from a heart attack leaving a 9 and 11 year old behind. They were able to pay for the funeral, pay off debt, and set up college funds for the kids. Their agent sat with them to decide what to do. I know this is not a light and happy topic, but it is one I feel passionately about because I have seen families lose loved ones with and without insurance. I personally feel it is my obligation to continually ask you about your coverage. September is Life insurance month. Be sure you speak to someone about what you need and how to get it in place before the end of the month!
Katy Lindberg
Mom and Farmers Insurance agent
651-437-5031