5 Questions Expecting Parents Have About Life Insurance
It is always wise to consider life insurance, but especially if you are expecting a child. You may have questions about obtaining Life Insurance while expecting the addition of a new family member, so here are some commonly asked questions about obtaining Life Insurance by expecting parents!
Is Term or Permanent Insurance the best type of Life Insurance Coverage for new or expecting parents?
Before deciding exactly what type of insurance protection you will need, first you should understand how much death benefit you need to effectively protect your family. There are ways that you can do easy calculations online to get a round-about idea of how much you may need, such as this one below!
Thinking about Life Insurance when expecting or planning to start a family is a smart move!
Life Insurance Calculator
Next, you can figure out what type of coverage meets your specific needs. One great advantage of Term Life Insurance is that it typically costs less than Permanent Life Insurance, at least initially. This allows you to obtain affordable coverage, especially for young families that potentially don’t have a lot of disposable income, but do have a need for coverage. Permanent Life Insurance will provide you with both life-long coverage and typically, a cash accumulation feature, which can really be a pertinent and valuable source of money that you can eventually tap into in the future.
Many times, a combination of the two types, Term and Permanent, can be a great solution. The term policy would give you additional coverage during the time frame that the children are at home, with the permanent policy offering a life-long coverage and protection so you’re covered!
Is considering different kinds of coverage based on if you are a working mom or a stay-at-home mom?
Whether you are a stay-at-home mom or a working mom, you need protection, as what you do for your family either way is valuable. A stay-at-home mom isn’t compensated monetarily for her work, but if something were to happen, the cost to replace all the things she does, from home care to childcare would quickly become expensive and coverage would ensure the family gets where they need to be without added financial stress if something were to happen. The difference is simply that a working mother contributes financially; which can be critical to the family, so it would be necessary to think about replacing that income when considering how much Life Insurance she may need. As hard as it may be, we need to realize that losing a parent is stressful enough and adding financial hardships can make it that much more painful. Life insurance coverage can help ensure that the surviving parent wouldn’t have to work long hours or potentially take an additional job to pay the bills. Instead, they would be able to use their focus to manage the household and care for the children during a critical time in their life without the extra difficulties of worrying about finances. By properly assessing your unique requirements and your family’s specific needs to prepare accordingly, you can help yourself make the right life insurance decision so that the rest of your family can rest easy knowing that their financial requirements are met well into the future.
Is the coverage provided to you by the company you work for enough protection?
It’s a great benefit to have group insurance that includes a life insurance policy through your employer, but it is limited in several ways. The coverage is typically a lump sum of money, for example, $50,000 or it may be listed as twice your annual salary. It sounds like a lot of money but in the long run, how long would that money last and what will your family do once that money is gone? Another limitation of work provided life insurance policies is that once you leave that job, you will generally also lose your coverage as well, which means you leave your family at risk of financial loss or hardship should something happen. With how often people change jobs over time, it is quickly realized that those policies aren’t sufficient enough long term.
Starting a family can bring up a lot of new worries! Don’t let Life Insurance be one of them!
Now that I am expecting a child, are there any restrictions I should consider?
Especially if it’s early in your pregnancy and there are no major medical complications you should be able to get life insurance easily. It may be more difficult to obtain if you are further along or are experiencing gestational or other medical issues. In that case, the life insurance company involved may want to wait until after your child is born, which is why it is important for those planning to have a family to seek out coverage as soon as possible or to plan ahead.
How much should I expect to pay for life insurance?
The amount you pay for your Life Insurance policy is dependent on several things, but most importantly your current age and health. It depends on how old you are and how healthy you are, of course! Here is an example: A healthy woman of 30 years old could likely get a life insurance policy for $250,000 for a term of 20 years, for as low as $13 a month. Adding in a spouse or partner into the policy could get you a $500,000 policy with combined coverage, using the previous example for the term, for around $26 a month.
Talking with a professional Life Insurance Professional can be a really valuable asset at this stage. They’re able to do assessments allowing them to come up with the right type and amount of life insurance coverage that works not just for your family but for your family’s budget as well. Many people don’t realize that an agent will sit down with you and discuss option and offer advice free of charge, without any strings attached. Group Plans, Inc has been offering expert level advice on Life Insurance to the community since 1977 and is not only highly experienced and knowledgeable, but they truly care about managing your risk and getting you and your family the best coverage available to you in your budget, as well as helping you understand and complete any necessary insurance deadlines!
For more information on how to obtain a Life Insurance policy that best suits you and your growing family’s needs, or just to go over the best options and plans that are available to you, please feel free to contact us at Group Plans, Inc today at (623) 889-7600 to set up an appointment free of charge!