Probably the most responsible decision a parent can make is to purchase life insurance, making sure that the children and family are protected from a sudden and terrible loss.
Whether you have one or two incomes, most people need this life insurance. If one parent dies then usually the other parent either leaves their job to be with the children, or continues their job and uses some form of childcare, which can be very expensive.
Mark and Joan,
Halifax, Nova Scotia
Mark: I'm making about $55,000 a year, and we are currently renting a house for $850 a month. We've managed to save $5,500 in our savings account, but when we also take into account day-to-day living expenses it is obvious that if I were to pass away Joan would have serious financial difficulties.
Joan: We talked about this, and then decided to talk to an advisor. She was a great help, and we ended up deciding to purchase a 10-year term life insurance policy. We were able to get the amount of coverage that we needed for now, and after the ten years are up we have the option of converting the term life to permanent life insurance, which can be used to help out with our child's tuition, and more.