As a parent, you want what's best for your child no matter what. Part of taking care of them includes getting the right life insurance policy that gives them plenty of security in the event of your passing. Life changes when you welcome a little one into the world. You become more aware of your own mortality, and you think further into the future than you likely ever had before.
For young, healthy parents with no serious existing conditions, basic life insurance is highly flexible and usually sufficient for their needs. But you should avoid only having one parent covered or skimping on death benefits just because you don't have any health problems; anything can happen, and while it certainly isn't about expecting the worst, it never hurts your family to be prepared for anything. In addition to the obvious benefit, life insurance can also be a valuable tool that helps you finance retirement in a few decades. With a whole policy that generates a cash value, you can look forward to thousands of dollars in payout later.
How Much Does My Spouse Get if I Die?
Without life insurance, your partner will not receive anything upon your death. There may be workers' compensation if you are eligible, but in most cases, people without life insurance leave nothing other than their possessions. If you only had several thousand in the bank, that is what your spouse now has. With a good policy, you can leave them with anything between $150,000 to over $1 million. The total death benefit plays a large factor in the cost of your monthly premiums. But for a young person, even a great policy can be affordable due to their good health and long-life expectancy.
What Type of Life Insurance Is Good for New Parents?
There are two primary forms of coverage you can choose from: term and whole. Term policies last for a set period of time and come in lower quantities. A whole policy, also known as permanent life insurance, lasts as long as you live. It's ideal for parents who have a long-term financial dependent such as an unemployed spouse or child with special needs. If you are fortunate enough to enjoy wealth now, then permanent life insurance could offset any taxes you owe and be a valuable part of your estate planning process.
If you already have an expensive policy and want to sell it outright for one lump sum payment, consider uplifefinance.com. You can eliminate hefty premiums without completely sacrificing what you've put into the policy. Term coverage is ideal for parents who are merely planning for coverage during the time their children are dependent. You already have a good retirement plan in place, and you don't expect there to be any large financial balances, then a term policy should suffice. This lasts between 10 to 30 years and can be as low as $25 a month.
Making the Right Call
Your lifestyle and needs change over time, so it's okay to start off with a basic policy. You can always upgrade your coverage. The most important thing to do is have coverage for both parents that gives everyone in the family peace of mind.
