Becoming a new parent is an incredible, but often exhausting time in your life. It’s also an important time to get organized on financial planning, including finding a life insurance policy that’s right for you and your newest addition. Here’s a guide to life insurance as a new parent.
The Best Life Insurance for New Parents
For most people, term life insurance is the best option due to its affordability and ease, both of which are ideal for new parents. Term life insurance has flexible payment options, and since the policy only lasts for a specified period of time, you only pay for coverage for as long as you need it.
What to Expect About Life Insurance When You’re Expecting
When you’re expecting a baby, life insurance might not be at the top of your list of things you need, but it is definitely worth the effort and consideration during this important time in your life. The application process for a life insurance policy can take weeks, so you’ll want to plan ahead. Here are a couple of the top factors to note when considering life insurance coverage.
Life Insurance is More Affordable Than You Think
The cost of life insurance is determined by a number of factors, including your age, health, gender, and type of policy, making it entirely possible to get substantial coverage at an extremely affordable rate.
Buy Life Insurance Sooner Rather Than Later
Life insurance rates only increase as you age. If you purchase your life insurance policy while you’re young and healthy, your rate is locked in, regardless if you’re diagnosed with a medical condition later on. That’s why it’s important to get life insurance coverage sooner rather than later.
How much life insurance do new parents need?
The amount of life insurance needed for new parents will vary, but you’ll want to consider three points: how much you can afford, who depends on your financial support, and immediate vs. future financial needs. Both parents should consider life insurance, even if one parent doesn’t work, as childcare would need to be outsourced if one parent were to pass away. Our life insurance calculator can help you get started on determining how much coverage would be right for you.
Can I purchase life insurance for my baby?
While there may not be a pressing need for you to purchase life insurance coverage for your child, there are a few instances where it could be considered. Life insurance for children can serve as a savings account, to protect your child’s later insurability, to pay for potential funeral expenses or to provide financial stability for parents while they endure the loss of a child.
What is family life insurance?
Family life insurance is typically coverage through multiple policies or adding specific riders to your current policy. All members of the family should be considered when shopping for family life insurance coverage, and while some life insurance companies offer all-in-one family insurance plans, you may find that an individual policy tailors better to your needs.
Find the Best Life Insurance Policy for Parents with SelectQuote
There’s a lot to consider as a new parent, and finding a life insurance policy can seem daunting. We can help simplify the process, providing coverage and cost comparisons from some of the most trusted life insurance companies in just minutes. Just like car or health insurance, you hope you never have to use it, but it’s comforting to know the benefits will be there for your loved ones if the worst-case scenario happens.
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