UPDATED: Mar 26, 2020
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As a new parent, you will face a host of important decisions that come with the responsibility of caring for a family. When preparing for the birth of a new baby, parents may spend hours painting the nursery, finding a crib or picking out just the right name. Along with these activities, new parents should consider how they will provide for their loved ones if something should happen to them. Term life insurance is the most affordable way to do just that.
Why Life Insurance?
Most people would rather avoid thinking about any situation which takes into account any harm done to oneself or one’s loved ones. But you must prepare for the unexpected. The reason most people purchase term life insurance is to ensure a livable monthly income after a family member has passed. Life insurance can help protect your family and loved ones if you can no longer contribute to household earnings. Having a family that relies on you financially, especially with young kids, is a situation that requires life insurance. It is a good idea to get term life as a young family because this is when it will be the least expensive. This makes it inexpensive to take the necessary precautions to protect your family financially.
Life insurance policies can vary in exactly what is covered and how much is covered. When reviewing policies, you should consider how much coverage you will need. Whether in a single or dual-income family, both parents should always carry enough life insurance to guarantee that one of them would be in a position to carry on financially if something happens to the other. Even a parent who is not working and stays at home should have life insurance to make it possible for the family to cover expenses, such as additional childcare costs. You should have enough life insurance to equal four to five times your annual salary.
Designating a Beneficiary
New parents should update their beneficiary designations after the birth of a child. Beneficiaries should be chosen carefully, as changing the appointment to another person later can be a hassle. If you purchased a life insurance policy before you became a parent, you should consider updating your beneficiary designations with the birth of your child. Name a primary and a contingent beneficiary. This will guarantee that funds would be available immediately to your family rather than flowing to the estate, which could result in delays and additional expenses.
Life insurance is the cheapest, easiest and best way to ensure that your loved ones are protected should anything happen to you. Knowing that your family is financially protected can bring parents peace of mind as they celebrate the arrival of their new child. Get a free term life insurance quote and talk to one of our agents about the best company for you.