The cost of raising a child is something you can never really understand until you bring your first child home from the hospital. Moneysense.ca puts the monthly cost of raising a child at approximately $1,070. That substantial strain on a family’s budget has tempted many parents to forego insurance and treat it like an optional luxury.
Truthfully, insurance shouldn’t be considered a luxury. It could one day prove to be the key to maintaining your financial stability when faced with costly unexpected circumstances.
Mortgages: The Burden of Your Estate
With the purchase of a home comes a mortgage and debt. Opting to skip the mortgage life insurance could put your family in jeopardy should the policyholder pass away before the mortgage is paid up. When you’re gone, your family is on the hook to settle the rest of the debt. Without insurance to protect them, they could easily find themselves living on the street. With insurance, any outstanding payments will be covered.
Healthcare Costs You Didn’t Plan For
Provincial healthcare coverage can be extensive in some circumstances, but not all. Prescription drugs and specialized treatments, for instance, are typically not covered. Even something as simple as a course of antibiotics can costs hundreds of dollars. These kinds of fees can be impossible to afford when you’re struggling to get by each month. Having a drug plan can greatly reduce or even eliminate these surprise expenses.
Replacement Income Protects Your Family
For many people becoming a parent sparks an awareness of mortality and the finite nature of life. At any moment anything could happen that leaves your kids and your spouse to fend for themselves without you. Should you or your spouse suddenly pass away, you need to make sure your family has access to spousal replacement income which will help them maintain their financial quality of life.
Insure Both Parents
Many families make the mistake of only insuring the parent that is the primary income earner. In reality, both parents should be insured because each parent, no matter how much they earn monetarily, makes a valuable contribution to the survival of the household.
It’s time to shift your thinking when it comes to insurance. Even if you only consider the handful of reasons we’ve listed here, it’s clear that the cost of insurance is a small price to pay to preserve your family’s wellbeing and survival.