Without Life Insurance, Numbers Add Up for Next of Kin

Don’t let your debts become their debts.

Illustration of a person weighed down by piles of bills and debt with a help sign above it all. iStock

When someone takes on an obligation, they’re expected to fulfill it. But as we know, things don’t always work out as planned.

Our debts, for example, don’t end when we do: If something happened to you tomorrow, your family may wind up being responsible for paying off what you owe. And this is where life insurance can help. Consider these average costs in the U.S. and see how life insurance provides added protection for each.


Average amount of student loan debt for an American student in 20211
A life insurance policy can help add to your financial protection if you’re a co-signer on your child’s student loans.


Average monthly cost to rent a one-bedroom apartment in 20222

If you shared a living space with your partner, proceeds from a life insurance policy could help them stay in the place they call home.


Average annual cost of childcare in the U.S. in 2020 (It could have been more than $24,000, depending on where you lived.3)

This is just a fraction of the estimated $272,000 (on average) that a middle-income family paid to raise a child born in 2022.4 That amount covered the first 18 years of the child’s life and didn’t even include the cost of a college education.5 A life insurance policy can help cover child care costs if the unthinkable happens.


Average amount of credit card debt for a U.S. family6

Life insurance benefits can be used to help pay credit card bills and cover other financial liabilities.

  1. Value Penguin/LendingTree 2019
  2. “Rental prices are soaring around the US,” Business Insider, Wolf Richter, July 2018
  3. “Historical Census of Housing Tables,” United States Census Bureau, 2011
  4. “Childcare Costs More Than College Tuition in 28 U.S. States,” Forbes, Claire Zillman, Oct. 2018
  5. “Raising a child costs $233,610. Are you financially prepared to be a parent?” USA Today, Aimee Picchi, Feb. 2018
  6. “2018 American Household Credit Card Debt Study,” NerdWallet, Dec. 2018

    AAA Life and its agents do not provide legal, financial, or tax advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. ALAN-25647-519-XX

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