Why do new parents buy life insurance?
Raising children can be expensive. Last December, the Child Poverty Action Group in the UK reported that the cost of bringing up a child is at least £190,000. Expat parents can expect that figure to be much higher, with private school fees, regular international travel, and all the perks that come with the expat lifestyle. Often, your income (or your partner’s) is the only way to pay for these costs of raising your child.
If you or your partner were to pass away, that could take a toll financially as well as an emotional toll. Life insurance is one thing that parents use to put in place a safety net. When parents purchase life insurance, they typically think about costs they would usually use their income to cover. For example, mortgages or debts, monthly bills, education and childcare, and everyday spending such as food and clothing. If the main breadwinner in your household should pass away, you’ll probably want help to cover these costs. That’s where life insurance can help.