Use Just a Tiny Percent of What You Already Spend to Protect Your Kids

Do you know how much it takes to raise a child these days? Are you sitting down?

That would be almost a quarter of a million dollars.

It costs $245,000 to raise a child born in 2013 until they hit 18, according to the U.S. Dept. of Agriculture.

This is not about a luxury upbringing. This is no Kardashian-esque baby outfitted in cashmere onesies. This is not about a privileged college education, because these numbers do not include the cost of college. That’s extra. Add on about $18,000 a year for public and $41,000 a year for private college.

This number—$245,000—is a place to live, food, clothes, health care…the basics.

You’re here to take care of these expenses now. But what happens if something were to happen to you? If an average middle-income family is spending around $13,000 a year on their child,that money would have to come from somewhere.

That’s where life insurance comes in. If you take between one and two percent of what you already spend on your child each year—or about $200—it could pay the yearly premium for $250,000 in term life insurance coverage. If something happens to you, your child would be okay financially.

We’ve used current (March 2016) Erie Family Life rates for a healthy 30-year-old dad or mom (who doesn’t smoke!) and gets a 20-year level term policy for the above example. Age and health will vary the amount of your premium—as your age increases or health decreases, the price goes up.

But the truth is, setting aside one to two percent of what you’re already spending on your child is a small price to pay to protect them. There’s no reason to wait. To help you figure out how much life insurance you might need, contact your local ERIE agent. He or she can help you decide the amount and type of protection is right for you, and how affordable life insurance can be to protect the ones you love most.