This National Financial Planning Month, here’s what parents and caregivers should consider to protect their families’ financial well-being.
CHICAGO, Oct. 28, 2025 – With National Financial Planning Month nearing its end, there’s no better time to think about your family’s financial future, including your decision of whether life insurance should be part of your plan.
The reasons to purchase life insurance vary depending on the stage of life someone is in. However, the birth of a child tends to be one of the top reasons for purchasing coverage, as this milestone brings many new and dynamic financial obligations. According to an August 2025 U.S. News & World Report article, the estimated cost for a middle-class family to raise a child from birth to age 18 increased to nearly $322,000 in 2025.
With that rising cost in mind, the two biggest financial needs parents and caregivers should consider before purchasing life insurance are income replacement and future education costs.
Income Replacement
For income replacement, parents and caregivers should look at it from two perspectives:
- The amount of income they may need to replace in the event a breadwinner dies.
- The cost to outsource the services provided by a parent or caregiver who doesn’t work outside of the home.
Planning appropriately for scenario one is often straightforward—it’s about ensuring bills and other financial obligations will continue to be covered. Scenario two, however, takes some research because it’s about anticipating the additional expenses of replacing services a family member once provided, such as child care and household management. Notably, the average cost of child care in the United States is almost $13,200 per year, according to a 2024 Child Care Aware of America report.
Future Education Costs
The rising cost of higher education also makes having a college savings plan more important than ever. For instance, data from the National Center for Education Statistics reveals that average college tuition and fees increased by 60% between 2000 and 2022. What’s more, the total cost of an education at a four-year public college—including tuition, fees, and room and board—averages about $119,600 for in-state students and about $196,300 for out-of-state students, according to the College Board’s 2024 “Trends in College Pricing” report.
To ensure an adequate amount of life insurance is purchased, parents and caregivers should put considerable thought into things like their dependent’s current ages, whether they might attend public or private institutions, and more.
It’s not always easy to forecast what your family’s financial needs might be down the road. Fortunately, there are many tools and resources available that can help evaluate the right amount of life insurance someone may need, including online calculators. These resources consider factors like age, existing investments and debt, state of residence, and more.
When in doubt, know that a CPA—a certified public accountant—is ready to help guide you through the process. CPAs are strategically positioned to help manage your personal finances all year long. The Illinois CPA Society’s free “Find a CPA” directory can help you find the trusted, strategic advisor that’s right for you and your family based on location, types of services needed, and languages spoken. Find your CPA at www.icpas.org/findacpa.