Protect your child by securing life insurance.
Becoming a parent is a life-changing experience. While it is an exciting time, many new parents also find it terrifying. Having a baby that is completely reliant on you is something that very few people are completely prepared for. However, there are certain things that you can do to make sure that your child is cared for. For instance, securing the right life insurance will ensure that they are taken care of financially, no matter what happens to you and your partner. Here’s what new parents need to know about their life insurance.
Buying Life Insurance
Many new parents put off getting life insurance because it feels too overwhelming and stressful. However, the process of securing coverage is actually pretty straightforward. This is especially true if you are applying as a young, healthy individual. When you secure life insurance early, you have an easier time passing medical exams and can also lock in cheaper rates. Now that most insurance companies allow you to request a quote online, there’s no reason to put off this coverage.
Determining Your Coverage Needs
Many parents are not sure how much coverage they should secure. Here are some of the factors that you should consider when selecting your coverage.
- The Cost of Raising a Child
- According to the U.S. Department of Agriculture, the average cost of raising a child is around $233,610. This amount takes into account basic costs such as housing, food, education, and other child-rearing expenses. When deciding how much life insurance coverage to secure, you need to think about your partner’s ability to handle these costs without your added income.
- College Expenses
- When you consider the cost of raising a child, this usually caps off at age 18. However, just because your child is now an adult does not mean that they are financially independent. If your child decides to attend college, then they will likely need financial support. This is why you should factor in higher education costs when calculating your life insurance needs.
Life Insurance for Stay-at-Home Parents
Many people assume that stay-at-home parents do not need life insurance because they don’t earn a salary. However, this is not the case. While stay-at-home parents do not earn money for the work that they do, their labor is still valuable. Because they remain at home to watch the children, clean, cook, and run errands, the other parent is free to go out and earn a salary. If the stay-at-home parent were to die, then their partner might have to pay someone to handle their responsibilities. When the stay at home parent has life insurance, then their death benefit can cover the cost of childcare and household help so the remaining parent can continue to work.
This is what new parents should know about life insurance. Do you have additional questions about your coverage? If so, then contact the experts at Udell Family Insurance. We are ready to assist you with all your coverage needs today.