Term Life Insurance: It's Not Just for Breadwinners!

Consider covering more than just the primary breadwinner's lost income with a term life insurance policy.

When deciding to buy term life insurance, most people think about protecting the primary breadwinner's income. This makes sense ... until you think about the financial impact of losing a spouse, partner, or even a housemate. Very often, a decision to buy term life insurance makes sense for them as well.

When you are ready to buy term life insurance for yourself, consider buying a term life insurance policy for other household members for these reasons:

1. Buy Term Life Insurance to Cover Shared Expenses.

If a spouse, partner or housemate shares the mortgage or rent and pays a portion of the bills, are you prepared to take on all expenses? The trauma of losing someone can be dramatically worse if you're suddenly faced with moving, losing your home, or shouldering other financial hardships. With term life insurance rates at some of the lowest levels in decades, opting to buy term life insurance can be a smart decision.

2. Term Life Insurance Can Cover "Hidden" Expenses.

A financial contribution to the household isn't always cash. The support of a caregiver is often worth its weight in gold!

According to the National Association of Child Care Resource and Referral Agencies, in 2010, the average cost for full-time care for a 4-year-old ranged from $4,050 a year to more than $13,050. Monthly costs for two children (any age) exceeded the median monthly rent and were as high or higher than the average monthly mortgage in every state.¹ In other words, a caregiver's contribution can really add up.

Child care isn't the only expense worth considering. The cost of caring for an aging parent can be expensive, too, ranging from about $219 a day for a private room in a nursing home to $21 an hour for a home health aid to provide in-home care.²

There's also running errands, housekeeping, tutoring homework -- all of these activities can amount to huge expenses if you suddenly have to pay for them. Buying term life insurance can prove to be a financial lifesaver. The term life insurance rates for your spouse are bound to be a fraction of the cost to hire help.

3. Use Term Life Insurance to Cover Final Expenses.

If your spouse dies, do you have the money for final expenses? According to the National Funeral Directors Association (NFDA), the average funeral costs $6,560 to $7,775. And that's before the cost of the cemetery marker, flowers and other costs.² Final expenses also include any medical bills, which can prove significant, especially if there was an illness. Buying even the cheapest term life insurance can go a long way toward resolving these unexpected bills.

4. Buy Term Life Insurance to Pay the Spouse's Debts.

If your spouse dies, can you pay off their debts? Auto loans, credit cards, personal loans and other obligations can create an unexpected financial bite.

Deciding to buy term life insurance is an excellent, practical way to make sure you're covered if your spouse or partner dies. Be realistic about the financial impact their death would have. Buying a term life insurance policy with a small amount of coverage could mean a huge difference at a time when you need emotional and financial support. To discuss term life insurance rates, speak to an agent or click here.

1. "Parents and the High Cost of Child Care: 2010 Update," National Association of Child Care Resource & Referral Agencies.
www.naccrra.org/publications/ naccrra-publications/parents-and-the-high-cost-of-child-care.php

2. National Clearinghouse for Long-Term Care Information, U.S. Department of Health and Human Services
www.longtermcare.gov/LTC/Main_Site/ Paying_LTC/ Costs_Of_Care/Costs_Of_Care.aspx

"2010 Member General Price List Survey," National Funeral Directors Association.
www.nfda.org/news-a-events/all-press- releases/2192-nfda-releases-results-of-2010-general-price-list-survey.html