You may be shocked to learn that the cost of raising a child to age 18 can exceed a whopping $250,000. 

A 2004 U.S. Department of Agriculture report estimates that families making $70,200 a year or more will spend $269,520 to raise a child from birth through age 17. 

Lower income households don’t fare much better.  Estimates for those with household incomes of $40,000 to $70,000 can expect to spend $184,320 per child, and families making less can expect to spend at least $134,400 per child.

Child-rearing is a huge financial responsibility and for most households it takes two working adults to make ends meet.  In the event of a parent’s untimely death, a sound life insurance plan will continue to pay child-rearing expenses.  The above statistics provide a simple guideline to determine how much life insurance is needed to accomplish this. 

There may be other factors to consider that can increase the amount needed including:  college education fund, private school tuition, or special medical needs of a dependent.

In addition to child-rearing costs other factors to consider when determining your life insurance needs include: Income of a spouse, paying off outstanding debt obligations if you should die, final expenses, family adjustment fund and existing life insurance policies.   

A trained life insurance professional can help you to determine your insurance needs.

For more information of a life insurance analysis, call AAA Insurance Agency: 800 333-4242