Use Just a Tiny Percent of What You Already Spend to Protect Your Kids

Do you know how much it takes to raise a child these days?

Are you sitting down?

That would be almost a quarter of a million dollars.

It costs $245,000 to raise a child born in 2013 until they hit 18, according to the U.S. Dept. of Agriculture.

This is not about a luxury upbringing. This is no Kardashian-esque baby outfitted in cashmere onesies. This is not about a privileged college education, because these numbers do not include the cost of college. That’s extra. Add on about $18,000 a year for public and $41,000 a year for private college.

This number—$245,000—is a place to live, food, clothes, health care … the basics.

The average middle-income family is spending around $13,000 a year on their child.

You’re here to take care of these expenses now. But what happens if something were to happen to you? If an average middle-income family is spending around $13,000 a year on their child (see the infographic below) that money would have to come from somewhere.

That’s where life insurance comes in. If you take between 1% and 2% of what you already spend on your child each year—or about $200—it would pay the yearly premium for $250,000 in term life insurance coverage. Something happens to you—your child is OK financially.

We’ve used a healthy 30-year-old dad or mom (who doesn’t smoke!) who gets a 20-year level term policy for the above example. Age and health will vary the amount of your premium—as your age increases or health decreases, the price goes up.

But the truth is, setting aside 1%-2% of what you’re already spending on your child is a small price to pay to protect them. No reason to wait. You can figure out how much life insurance you might need with this easy online Life Insurance Needs Calculator.

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Source of infographic: USDA

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