The birth of your first child is most certainly a joyful event. So many things about your life will change, and a vast number of priorities will shift. Just as you are falling in love with your child, the enormity of the task ahead becomes very real. Along with the basics of learning to fit a small human into your life will be the importance of providing a home, food, education, and support into adulthood. Life insurance is one of the essential tools for protecting and nurturing a new life.
Choosing Life Insurance For New Parents
Life insurance is about planning ahead. If at all possible, you should carry life insurance before you start your family. It will be seamless and possibly more affordable to add to your existing policy when you are ready to have children. When drafting your policy, you need to consider what happens to your family’s financial health if you are no longer there. If you are in a committed relationship, it is time to consider insurance coverage. Your next step is to talk with your agent about the best life insurance for young parents while preparing for the future.
What Is The Best Life Insurance For Young Families?
There are two types of life insurance, term and whole life. Term insurance is more affordable because it is for a specific length of time, usually between 10 and 30 years. If your main goal is to be sure your loved ones will have enough money to pay the bills, mortgage, and provide for education, then term life is probably right for you.
Whole life is also called permanent insurance. You buy the policy and pay for an extended period, and it covers until the end of your life. This type of policy is also an estate planning tool as the account is considered tax-exempt. Your decision about which choice is the best life insurance for new parents should be based on what you can afford and for how long. It would be best if you discussed whole life with your agent and your financial planner.
Who Should Be Covered?
With a new baby, life insurance is not just for the primary bread-winner. If you are a two-parent household, whether both are working or one is a stay at home partner, both parents need insurance. If one adult stays home to raise children, that work has a dollar value. No one wants to think about a parent’s death, but financial needs continue despite the burden of grief. It is best to thoroughly plan for all the contingencies around the type of life insurance new parents require.
The current average cost of raising a child to adulthood is two hundred and fifty thousand dollars. Your Independent Insurance Associates agent know the risks and burdens of becoming new parents, and we are here to help. Preparing for something as devastating and complex as the death of a parent is difficult. We believe these decisions require forethought and careful consideration in case the worst should occur. Our job is to give you peace of mind for the financial health of your growing family, so contact us today to help that happen. Your job is to change those diapers and hope the baby will sleep through the night.