Congratulations on the new addition to your family! As a new parent, friends and family tell you your life will never be the same — did you know neither will your insurance needs.
You’ll want to protect your little bundle of joy forever. That’s why life insurance is crucial for parents. If you already have a life insurance policy, your needs change greatly once children are in the picture.
Here are some things to consider and tips for purchasing life insurance as a new parent.
Consider permanent and term life insurance… and know the difference.
There are two main categories of life insurance: permanent and term. Permanent life insurance offers lifelong coverage, while term life insurance provides coverage over a set time period. For parents, it may be wise to purchase a permanent policy and then add term insurance during your kids’ dependent years. This allows you to have a strong coverage foundation, plus some extra protection to ensure that your children will have what they need.
Think about education expenses.
It may seem too soon to be thinking about education expenses for a baby who can’t even walk yet, but it’s important to consider these costs when determining your life insurance policy. Factoring education expenses into your life insurance can help ensure that they will have the same opportunities even if you aren’t around.
Stay-at-home parents need life insurance, too.
Stay-at-home parents may not earn an income outside of the home, but consider what it would cost to replace everything that they do. The loss of a stay-at-home parent may mean that the surviving parent will now need to cover childcare and other expenses, which can rival the cost of college tuition. Purchasing life insurance for a stay-at-home parent can help cover these costs and relieve some of the financial burden on the surviving parent.
Speak with an independent agent.
An independent agent can help you find the best life insurance coverage, for the right price. Your agent can provide quotes from multiple carriers, discover discounts and work with you to determine your exact life insurance needs.
Get started today by finding an agent and taking the first step to protect your family’s future.