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Women are now earning a larger share of the combined family income than ever before. According to Statistics Canada, women were the breadwinners in more than 40% of Canadian households in 2015. That’s up from just 17.4% of households in 1976.
As this portion of family earnings grows, life insurance becomes even more important. Why? Because life insurance can give you financial security in case of an early death in the family. Here’s why it matters and how it can help you.
Why do moms need life insurance?
Losing your income could put a serious dent in your family’s earnings. This can greatly affect their quality of life. Ask yourself: If I was no longer around to contribute financially, could my family get by? Would they have enough money for housing, groceries, and clothing? Would they struggle to pay the bills?
The right coverage provides a buffer to help cover the cost of living. That means your family will stay secure in case something happens to you.
How does life insurance help single moms?
Are you a single parent or the sole earner in your household? Then life insurance is even more important.
Taking out a life insurance policy with your children as the beneficiaries helps secure their financial future. As beneficiaries, your kids will get a tax-free death benefit if you pass away.
What exactly is a death benefit? Well, it is the amount of money the beneficiary receives when the insured person dies. The amount depends on the insurance policy, and how much coverage you purchased. Your beneficiaries can then use that money to cover expenses like:
- mortgage or rent,
- tuition fees,
- funeral costs or
- any other living expenses.
You can also insure any child or spousal support you receive. You’ll be covered in the event your ex or your child’s other parent dies.
How can life insurance help caregivers?
In addition to working, many women also caregivers to their children, partners and aging parents.
According to StatsCan, women spend an average of 14 hours weekly caring for children. That’s compared to an average of 10 hours for men. And, women are more likely to spend over 20 hours a week providing care to loved ones.
Because of this caregiving imbalance, getting life insurance is even more critical for women. Of course, no one could replace you or the care you give. But life insurance can help pay for childcare, nursing care or home support your family may need in your absence.
How do you choose the type of life insurance that’s right for you?
There is no one-size-fits-all solution. Your income, debt and cost of living all count when calculating the amount of coverage you need. Your choice should also account for how many loved ones depend on you, including your children or aging parents.
You’ll also have to consider what type of life insurance is best for you. For example, you may just want coverage for a set amount of time – say until your kids have graduated college. In which case, a term life insurance plan may work best for you.
If you are looking for lifelong protection, you may want to consider permanent life insurance.
An advisor can lay out other insurance options too, like disability or critical illness. Depending on your situation, you may need more than one type of insurance to help protect your family’s needs, today and into the future.
Not sure where to start? A Sun Life advisor can help you find the best plan to provide for your family. Don’t have an advisor? Find one now.