Just like we have car insurance for that 'just in case' scenario of a car accident, we have life insurance for just in case. We don't want anything to happen, but if it does, me nor hubby (or our child's guardian) will be totally screwed finance-wise. Because I can guarantee you, feeding/clothing 4 teenagers? Ain't going to be cheap, even hitting grocery sales and consignment sales.
But we're also a one-income family of six people - we're not exactly rolling in dough right now, and have to plan things out fairly carefully. Some people don't have that stressor, we do. Plus if something were to happen, hubby could take some time off to spend with the kids before going back to work (while paying through the nose for childcare/a nanny!), or I could stay home until they're grown and out of the house if I were able to live frugally enough.
(If you're curious, 2003, 2006, 2008, 2010, and yes, it's a busy house)
For one, life insurance is really inexpensive. Use it for covering specific needs that will disappear with time, such as:
- Income replacement
- Financial security for dependents
- College funding
- Final/burial expenses
To save the most money, shop around using one of the many internet sites that offer free quotes. There's a one at Quality Term Life that let's you compare rates from hundreds of top rated companies. Life insurance is essential for sound financial planning for most people. If you're not independently set, protect your loved one's future, ASAP.
No one gets on the road with the expectation of being killed by a drunk driver, but it happens. Youth and good genes will not protect you against random tragedy.
If you have selected a guardian for your child, have you discussed your economics with them? How do they feel about you not having life insurance?
While we certainly don't expect our guardians to benefit economically raising our children, we also don't think its fair to impose an economic burden on them through our lack of planning. They should be able to send their kids to college, retire, have vacations and not make economic sacrifices for our kids. I note you say that your family would do ANYTHING for you and your kids. So would mine. My 75 year old father would go out and get whatever job he could if it was necessary to help support my children. But is it fair?
I support homebirth that meets the qualifications set forth in the AAP's 2013 policy on homebirth.
I wanted to commend you for thinking this through - I found financial and estate planning decisions to be some of the most stressful parts of having a baby, and it was tempting to just ignore it and hope for the best.
While I'm always cautious about products that claim to be able to insulate you from life in general, life insurance has been a huge part of our safety net. The way I think of it is having barriers against events that can devastate a family financially. If one or all breadwinners in your family were to die, it's reasonable to expect that investments may not be able to take care of your children at that particular point. If we had done that in my family, for instance, and my husband had died in 2008 when the financial crash happened, my children and I would have had zero money with which to live on while I pulled it back together. We also carry high-deductible health insurance (we're self-employed), even though most of our preventative health care is not covered by our health insurance - it's just a barrier against anything that could devastate you financially, such as an operation or accident.
Having said that, we're also really conservative about how long a term we buy our insurance for. Our policy only goes until our kids are 15 or so, when it would be reasonable for them to be able to help look after themselves if the remaining parent had to go back to work.
Good luck with this decision. I've helped plan Birth2Baby fairs in my community, and always push for us having a financial-planner type person to talk with parents about these issues, because they are so important, yet confusing.
I truly believe that every young family should have life insurance. But, it really is/should be quite inexpensive. So if you are getting outrageous quotes, shop around. Unless you are in horrible health or smoke or something. I pay $22 a month for $250000, although I bought it about 13 years ago when I had my first. And I was in my late 30s. even if the price doubled in the last 13 years, it would still be a good deal. However, I think disability insurance is probably more critical than life insurance even. Unfortunatley, it is also more expensive.
Shanna, Only until age 15? Seeing your kids through college is one of the primary reasons that parents buy life insurance. It's not a trivial expense. With the primary income earner gone, it would be as much a detriment to your children's future as anything.