Having a Baby? Have You Thought about Life Insurance?
If you’re having a baby, life insurance may not be top of mind. After all, there are innumerable things that cross your mind when you’re about to become a parent. Not only do you have to select car seats, strollers, cribs, and more, but you are probably also thinking about day care, school districts, and more. However, there are many times in life that life insurance needs to be top of mind. Life changes, or Pivotal Moments, give us an opportunity to realize that current coverage might not meet current family needs - especially if your family is growing. Life insurance can be a difficult topic to talk about for some of us, but being fully insured is a great way to make certain your family’s future is secure.
As you enter into the world of parenthood, it’s probable that you don’t have enough life insurance coverage. Even if you have a life insurance policy provided through your employer, additional life insurance is a great idea. When it comes to life insurance, you want a safety net that is big enough for every need your family might have. So really, when you are having a baby, there are several life insurance questions to consider; do I have life insurance? and, do I have enough?
Your life insurance plan should be just like you: unique. Each person’s life insurance need is different, so you should work with an insurance provider who understands that the needs of your family are unique to you. Let’s discuss the basics of life insurance - there are two basic types of life insurance policies, with ways to personalize each type of plan based on your needs. Permanent life insurance policies run from the time of purchase until the end of the policyholder’s life, regardless of age. On the other hand, term life insurance policies are typically less expensive than permanent policies, but only cover a specific time period - for example, from purchase to age 65.
So, how much insurance is right for you and your family? Each family’s needs are different, but a typical industry rule of thumb is to purchase enough life insurance to replace five to seven years of your salary at a minimum. However, many families today have a mortgage, car payments, and other monthly bills. And, if you have a baby on the way, there are college funds to think about too. If your goal is for your family to maintain their current lifestyle in the event of your passing, it’s crucial to calculate the coverage that’s right for your family.
Most importantly, when you are considering the specific life insurance coverage that’s right for you and your growing family, you’ll want to work with an insurance provider who you know and trust, and who understands your needs. Life insurance is be a serious decision, with lots of aspects to consider, so it’s important to cover your family with the policies that are right for you and your future.
About the author: Michele Cleary has been in the business for over 35 years and holds a CLTC designation. She believes that life insurance can give you and your family peace of mind, especially when you have other things to worry about. Michele now has 4 grown children and knows that proper planning is essential. You can reach her at 1-800-651-1953 or MCleary@Pivot.com.