Having a baby or bringing a child into your life is one of the biggest life adjustments you can get. You are now responsible for another human life, and they will be looking towards you when they need help, turn to you in times of need, and rely on you until they can make money and live life on their own. Since this is such a huge undertaking and you have someone depending on you big time now, it is a great idea to take a few extra steps to work toward providing them with care if something were to happen to you.
And one of those first steps would be figuring out a life insurance plan. Life insurance is just like homeowner’s insurance, you hope to never have to use it, but when you need it, you really need it. That said, we’ll take a look at five life insurance tips below to help you in this journey.
Know what you are looking at
It is easy to get lost in the life insurance world and not be sure what to pick or how to get out of it with a plan. So, it is a great idea to figure out which plan is worth it for you and your family. As an introduction to life insurance, it is good to know that there are three major types of whole life or permanent life insurance: Universal life, traditional whole life, and variable universal life—all of which have variations within themselves. So, the best place to start with this is learning about each one and finding the perfect fit for you and the activities your family participates in.
If you are already feeling overwhelmed by the thought of having to pick which plan is best for you, know that you don’t have to be in this alone. There are so many experts out there who want to help educate you and cater to your wants and needs. Plus, they aren’t all difficult or scary to work with. They are so easy to partner with that you can even create a will online. Talk about a simple way to make sure your family is taken care of.
It isn’t an easy thought to think about, but the truth is something could happen to you at any moment. So, you want to be sure that you are saving money and starting your life insurance coverage as soon as possible. You don’t want to wait until something happens to you, and leave your family trying to figure out what to do next. Get everything in order for them, so when the time comes, all they have to worry about is what flowers to buy instead of worrying about how to make end’s meat.
Consider covering both parents
Sometimes when couples have children, one parent decides to stay home to care for them, which saves money for them in the long run. But, that means they lose their benefits through their company and might not be offered life insurance anymore. If that is the case, we get that you may not want to pay extra to insure both parents. But, we think that both parents having life insurance is a smart move. You want to be sure that your child is covered completely and able to keep living the life they are used to if one, or both of you, has to go.
When picking a policy, you want to be sure that you are picking one with a timeline of at least 20-30 years because those are the main years that your children would be relying on you to take care of them. That timeline gives them the freedom and security to live their life normally and comfortably.
We hope that your life insurance policy never has to be used, but as a new parent, it is best to be prepared just in case it does.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.