Protect Your Family

Understanding The Need For Family Protection

These are the years for building dreams-finding the right home for your family, providing an education for your children, creating a comfortable lifestyle you can all enjoy. You're making these dreams become reality, and your family needs you during these important years. What would happen to your dreams if you or your spouse were suddenly out of the picture? Have you accumulated the funds that would help your family continue on?

Probably not. And, if you are like many couples, you may assume the life insurance you receive through work will replace your lost income. But it's estimated that families need five to ten times the annual income of both parents to continue normally. And whether it's you or your spouse who is left behind with the children, the same security needs continue. A sound financial plan takes everyone's needs into account.

Covering Your Mortgage

First and foremost is the roof over their heads. Do you want to make sure your spouse and children can continue to live in their home? Unfortunately, your long-term mortgage debt may be more than they can handle without your income. And this does not include the cost of repairs and upkeep the property will need to retain its value. Relocating to a different house or apartment could drastically alter your family's lives. Think about it. Would you want them to have any less than they have now?

Providing The Right Credentials

Of course you want your children to have the foundation for a promising future. In today's world that means a college education. Actually, many career fields and companies require advanced degrees before even considering job candidates. But could your children continue their studies beyond high school if your support suddenly halted? Would the money you've put aside for college be needed to meet other expenses?

Unfortunately, college costs are not expected to go down in the years ahead. Preparing to meet this expense is key to a financial plan that succeeds.

Expected College Costs

School Year (Fall)	4-Year Cost (Public College)	4-Year Cost (Private College)
2004	$61,066	$129,932
2005	$64,120	$136,428
2006	$67,326	$143,250
2007	$70,692	$150,412
2008	$74,226	$157,933
2009	$77,938	$165,830
2010	$81,835	$174,121
2011	$85,296	$182,827
2012	$90,223	$191,968
2013	$94,734	$201,567
2014	$99,470	$211,645
2015	$104,444	$222,228
2016	$109,666	$233,339
2017	$115,150	$245,006
2018	$120,908	$257,256
2019	$126,953	$270,119
Projected costs based on the 1999-2000 average four-year public and private college costs, as reported by the U.S. Department of Education.

Protecting Their Lifestyle

If you are like most Americans, you depend on credit to make certain purchases that enhance your family's lifestyle. For example, you need to maintain safe and reliable transportation for your family. You want to enjoy vacations and take on other occasional expenses. In fact, the average household carries a credit card balance of more than $7,000* due to these expenses. Families may have car loans and other liabilities as well.

Would you want to pass on these responsibilities to your spouse and children? Would they need to sell off assets such as your home or car just to keep up with monthly payments? Without the financial resources to replace lost income, their lifestyle could change drastically.

*Based on most recent figures from the Federal Reserve, 1997.

Maintaining Your Family's Balance

As you know, a successful family depends on the balance of its routines. Each family member assumes responsibilities that make the family work. And today many rely on two incomes to keep on track with their financial goals. But if your family depends on only one parent's income, don't forget to add up what the other parent contributes. Would you be able to replace it?

Consider the cost of day care, or before and after school care, rides to soccer games and scout meetings. Who would keep your house in order and feed and nurture your loved ones while you are at work? You may have to pay for help in maintaining balance in your lives. A smart financial plan accounts for these routine needs.

A Vital Plan For The Future

Like your growing and evolving family, your financial plan must be a vital and changeable design for the future. You review it frequently to evaluate its relevance to your current needs. As your children grow and your lifestyle changes, so must your plan. If your life stops suddenly, your plan must carry your family forward.

The death of a husband or wife is among the most devastating losses one can suffer – both psychologically and financially. A recent study contained these findings:**

Following a spouse’s death:

Widows experience an average 38% drop in household income.

Widowers' incomes drop an average of 26%.

One out of 10 widows aged 45-54 years is unable to "make ends meet."

With life insurance proceeds, beneficiaries are able to:

Pay bills and loans	58%
Keep/renovate housing and contents	24%
Save or invest	18%
Improve or maintain lifestyle	21%
Make a major purchase (home or car)	8%

** 1998 Survivor Study conducted by the Life Insurance Marketing Research Association (LIMRA) International.

One effective and reliable way you can cover your financial needs is through an appropriate life insurance policy. In fact, life insurance is a unique solution that provides a tax-free, lump-sum payment to beneficiaries in the amount you choose. Also important is the fact that life insurance is flexible in the way you can budget for it, and in the ways you can use it to meet certain expenses while you are living.

Other options you may want to consider in a comprehensive plan include annuities, mutual funds, IRAs or other retirement savings plans, and disability income insurance. A financial advisor or insurance professional can help you determine the right combination of financial solutions to meet your family's needs.

Why Leave The Future To Chance?

No one knows what the future holds. But through thoughtful financial planning, you can gain confidence that your family will be protected. Even if you haven't considered all your family's needs until now, it's not too late. Designing the right plan today can ensure that the dreams you've built will last.

Additional information about insurance products and terms can be accessed on www.life-line.org.