Pekin: Life Expenses & Why you should consider Life Insurance

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Why should you consider life insurance?

Time travel. That’s the only way to explain how the years disappeared, right? In the blink of an eye, a carefree teen changed into an adult with a house, a committed partner, and a family. You now need to prepare your family to be financially strong in the event of your absence - From stacks of diapers to mortgage payments, life insurance can cover your family through every stage.

If you’re not there to support your loved ones, life insurance can take care of:

  • House payments

  • Utilities

  • Home maintenance

  • Childcare

  • Car payments

  • College tuition

A Closer Look at the Family Life Cycle

The C.S. Mott Children’s Hospital says the family life cycle has five distinct stages:

  • Independence

  • Coupling or marriage

  • Parenting: babies through adolescents

  • Launching adult children

  • Retirement or senior years

Are you living in stage three or approaching stage four? Let’s talk about life insurance and how it could help everyone who depends on you.

How Your Home Costs Add Up

The Balance says the average monthly mortgage payment falls somewhere between $1,022 and $1,505. You then have to pay for home upkeep, too.

The cost for maintaining your home depends on:

  • Where you live and the weather in your area

  • The age of your house

  • How many pets you have

  • How many children you have

Then there is the electricity, water, and other utilities.

Move.org says average utility costs in the U.S. total $398.24 per month:

  • Electricity: $110.76

  • Natural gas: $72.10

  • Water: $70.39

  • Trash/recycling: $14

  • Internet: $60

  • Cable TV: $85

Have you done the mental math? Or, do you have these totals saved on a spreadsheet?

A Big Understatement: Childcare Is Expensive

According to Child Aware of America, childcare costs more than college tuition in 28 states.

Over 70% of families spend more than 10% of their income on children, according to the Care.com 2019 Cost of Care Survey

We’ll drop the stats for a second. Think about what your family would do without you. It’s probably something you don’t like to dwell on.

That’s where life insurance comes in. It helps your loved ones pay for ongoing education and development, whether it’s daycare or college.

College Won't Get Cheaper

Speaking of college, have you paid off student loans? Will you pay for your children’s college education?

Forbes says the cost for attending university has increased nearly eight times faster than wage growth between 1989 and 2016.

Don't bet on tuition and fees dropping anytime soon.

The College Board College Pricing Report shows the yearly costs for four-year universities:

  • Average in-state tuition and fees for public four-year sector: $21,950

  • Average out-of-state tuition and fees for public four-year sector: $26,820

  • Average tuition and fees for private four-year institutions: $36,880

You can have your kids apply for every scholarship or tell them FAFSA is their best friend. Should you have a backup plan, though?

Life insurance can wipe out student loan debt. Your coverage amount could account for college tuition and fees, too.

What About Trade School?

College isn’t for everyone.

Trade school degrees could lead to the following careers:

  • Welder

  • Chef

  • Graphic designer

  • Plumber

  • Electrician

Still, the average trade-school degree costs $33,000, according to Hub & Spoke.

From Clunkers to Luxury Vehicles

Don’t confuse a car payment with the total cost to own a vehicle. Nerdwallet says $8,649 is the average ownership cost for vehicles driven 15,000 miles per year.

Even if your kids drive family hand-me-downs, someone has to pay for:

  • Gas

  • Registration and fees

  • Car insurance

  • Oil changes and maintenance

Your family fleet might have a bigger price tag than you thought.

Closing the Chapter: Your Final Expenses

Here are average prices for traditional and cremation burials from the National Funeral Directors Association (NFDA) Report:

  • Non-declinable basic services fee: $2,100

  • Removal and transfer of remains to funeral home: $325

  • Embalming services: $725

  • Other preparation of the body: $250

  • Use of facilities and staff during viewing: $425

  • Use of facilities and staff during burial: $500

  • Hearse vehicle: $325

  • Car or van services: $150

  • Basic memorial printed materials: $160

These expenses add up to $4,960.

Cremation:

  • Cremation fee (if using a third party): $350

  • Cremation casket: $1,000

  • Urn: $275

Traditional:

  • Metal casket: $2,400

  • Cemetery vault: $1,395

The average cremation costs $6,585, while the average traditional burial with a vault costs $8,755.

Dan Zeiler

dan@zeiler.com

708.597.5900 x134

Life InsuranceDan Zeiler