Life insurance might not have crossed your mind before there was a newborn relying on you. But having a baby changes everything. If this is your first time looking for coverage, you may have questions. Here are some typical ones we have heard over the years…
Term or Permanent… What Type is Best for New Parents?
The first thing you need to do is calculate how much life insurance you need. A life insurance professional can help you with this number. After you have the number you will know how much death benefit you need to protect your family. Then you can move on to what king of coverage you want… term or permanent. Most young families do not have a bunch of disposable income and term insurance may be the best for them because it is less expensive. But you still need to weigh your options because permanent insurance provides both lifelong coverage and has a cash accumulation feature, which can be a valuable source of money that you can tap into in the future. Often the best solution can be a combination of term and permanent life insurance. You could carry term while the children are at home with the permanent policy offering lifelong coverage.
Working Mom Versus a Stay at Home Mom… Is There a Difference In Coverage?
It’s not just the working mom who needs life insurance. Stay-at-home moms should have coverage too, even if they don’t earn income. A stay-at-home parent provides valuable services, such as child care, that the surviving parent would have to pay to replace. A life insurance payout could also enable the surviving breadwinner to take a few years off work while the family regains footing.
Is My Company Insurance Enough?
Usually company insurance is a lump sum like say $50,000 or sometimes it is twice your yearly salary. This is a lot of money but the question is how long would that money last and what happens to your family financially after that is gone? But one of the most crucial things to remember is that if you job, you lose that coverage. If you do not have a personal policy that you own… you will be leaving your family at risk.
Will I Have Problems Getting Insurance If I Am Pregnant?
I advise all young families that are planning to have children to get the coverage as soon as possible. A healthy 30 year old woman could get a 20 year $250,000 term life insurance policy for under $20 per month. The reason being is if you are pregnant and you develop medical issues, it may be difficult to obtain a life insurance policy. The life insurance company may want to wait until after your child is born to give you coverage.
What Can I Expect to Pay for Life Insurance?
It will depend on how old you are and how healthy you are. For example a 30 year old woman could get $250,000 in life insurance coverage (must be a non-smoker) for under $20 month. You with your spouse or partners could get $500,000 of combined coverage, if both are 30 years old and healthy, each could be insured for $250,000 of term insurance for 20 years for under $30 per month in most cases.
My best advice is call a life insurance agent. They will sit down with you and explain all types of insurance. They can do a needs assessment and come up with the right type and amount of life insurance that works for your family’s budget and need.
Rollins Insurance represents multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio.
Rollins Insurance is an independent insurance agency providing our clients the best prices with the most coverage possible since 2008. We represent multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio. We find that most people are under-insured and over-paying when we meet them. We love what we do and our primary business is Personal Auto, Homeowners, and Life and Health insurance. We are a family-owned and managed business that specializes in providing needs-based insurance services.
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