There are 43 million, unpaid family caregivers in America and most of them don’t have life insurance. Unfortunately, if a caregiver suddenly passes away without insurance, the care they provide may be in jeopardy. If you’re a caregiver, consider purchasing life insurance for three reasons:
To Ease the Transition for Loved Ones
When the primary caregiver passes away unexpectedly, there are significant changes your family must take into consideration. If a young child is left behind, the remaining parent may need to work full-time to pay the bills. This often means paying for child care. Other costs might include cleaning the house regularly or shopping for groceries. If care was provided for a parent or grandparent, they may need to be placed in assisted living or a home for the elderly if another family member can’t care for them. A life insurance policy can help make the transition easier for your loved ones who may not be able to provide the same level of care.
To Cover Caregiving Expenses
Caregivers often have significant amount of out-of-pocket expenses. An AARP study in 2016, “Family Caregiving and Out-of-Pocket Costs,” estimated that family caregivers spend an average of nearly $7,000 on costs related to caregiving a year, which was nearly 20 percent of their income. Three years later, that cost has only risen. Should something happen to a primary caregiver, those expenses will need to be covered by someone. Life insurance can help provide for those costs, so loved ones aren’t struggling to pay them.
To Prepare for Potential Health Issues
Studies have shown that being a caregiver while working a full-time job and taking care of your immediate family, can increase your risk for developing a serious illness, becoming depressed, or just experiencing a general decline in the quality of your life. In order to provide for others, you need to be healthy. That means taking the time to care for yourself emotionally and physically. But it’s also a good idea to have a backup plan in case something does happen to you. Purchasing life insurance can give you that peace of mind.