As parents, we always want what’s best for our children. Though it’s tough to think about, making sure that you have a life insurance policy in place is the most responsible way to make sure that your spouse and children are cared for when you pass away. Here are a few factors that every parent should take into consideration when evaluating life insurance options:

Cost of Raising Children

Raising a family is anything but cheap. According to a study done by the USDA, to raise a child born in 2015 was about $233,610 on average, not including college or factoring for inflation. [1] They provide a “Cost of Raising a Child calculator” to estimate how much it will annually cost to raise a child based off spending patterns for families similar to yours. If you’re a single parent, this is a big sum to take on by yourself, and having a life insurance plan in place can help to make sure that your child is provided for through their childhood and adolescent years.


Financial obligations in the form of existing debt can become a huge burden for a spouse after losing their loved one. A mortgage, car payments, monthly utilities, and other debt can make it even harder for the remaining spouse to provide for the children, especially if the primary breadwinner is the person who passes away. A life insurance policy relieves that burden and helps to provide the family with financial security.

College Costs

According to a study by The College Board, the average annual out-of-pocket expense for a full time, in-state four-year college student attending a public university was $4,140, with an estimated additional expense of $8,070 required for living costs after grant aid, tax credits, and deductions. [2] With that cost only going up, life insurance is a great way to make sure that your child receives a quality education without having a pile of student loan debt.

Funeral Expenses.

The first expense that’s likely to take place after a person’s death is the cost of the funeral. With a life insurance policy, you can be assured that your family will have one less thing to worry about during an already tragic time. According to, the average North American traditional funeral costs between $7,000 and $10,000. [3] That sort of expense without insurance or financial planning can make the passing of a loved one even more challenging.

Stay at Home Parents

It’s a common misconception that a stay at home parent doesn’t need a life insurance policy. While you could never put a price tag on the job of a parent, estimates that the annual salary of a stay-at-home parent would have a median annual salary of $162,581 factoring in all a stay-at-home parent does for their child. [4] With that in mind, it’s not hard to see why it’s a good plan for both parents to be insured, not just the one who leaves for the job site every day.

Fortunately, the cost of a life insurance policy is usually very affordable. Preparing for death with a life insurance policy can bring peace of mind for you and financial security for those you leave behind. Buying a policy while you’re young and healthy can save you lots in the long run, so there’s no reason to delay. To learn more about the life insurance coverage that’s right for you, contact your independent agent.

Copyright © 2018 Central Mutual Insurance Company. All rights reserved.


[1] U.S. Department of Agriculture. “The Cost of a Raising a Child.”

[2] CollegeBoard. “Students and Families Pay More Out of Pocket as Grand Aid Fails to Keep Up With Moderate Increases in Tuition and Fees.” December 4, 2017.

[3] Parting. “Funeral Costs: How Much Does an Average Funeral Cost?” September 14, 2017

[4] “Moms: We know you’re worth it. But how much is ‘it’ really worth?” May 14, 2018



One response to “Life Insurance for Parents: Considering Your Loved Ones”

  1. Wow, I love your article. Thank you so much. Insurance is a great product to help safeguard you monetarily in case of any mishaps. We need life insurance in India to save our family and secure their future.

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