Raising a Family

Raising a child is one of the great joys – and challenges – of life. And since it is impossible to predict the future, it is incumbent upon you to make certain that your family is properly protected.

Key Issues

As a parent, you’ll have new financial responsibilities. Begin by reviewing and estimating future expenses. You may need to consider the costs of buying a new house or funding an education.

Now is also the time to re-evaluate your insurance coverage. A life insurance policy can be an important part of a family’s safety net. Whether you buy a permanent or term policy, life insurance is one of the best guarantees you can have to help protect your family’s future.

Make sure you have enough coverage. There are several strategies for estimating the amount of protection needed, including:


Your insurance need is estimated to be six to eight times that of your gross annual income.

Income plus expenses

Your insurance need is based on five times your annual gross income plus your outstanding debts, such as mortgages, credit cards and loans.

Estate preservation and liquidity

You calculate the insurance needed to cover estate taxes, fees and expenses at the time of your passing, and provide additional tax-free income to your beneficiaries.

Also, give careful thought when naming your beneficiaries. Most insurance companies allow a primary, secondary and final beneficiary and it is advisable to name all three.

Be sure to also review your investment, retirement, and estate plans periodically.

Products to Consider

Term Life Insurance

If you have young children, this is the time when life insurance is most important. It is appropriate to consider coverage for both parents during these years. This is when many families purchase term life insurance to provide protection until the children are grown.

Universal Life Insurance

If you need the security of permanent life insurance protection, universal life may be the right choice for you. Unlike term coverage, universal life can build tax-deferred1 cash value over time that may be used to fund important expenses later in life.

Variable Universal Life Insurance

Variable universal life policies carry more risk than traditional universal life policies, but they also have greater cash value accumulation potential. A portion of the premium is allocated among a range of available investment sub-accounts, as elected by the policyowner. Investment professionals manage the funds, and the policyowner has the ability to make a number of transfers among the sub-accounts and a fixed account each policy year to accommodate changes in investment strategies.