Building a family is an exciting adventure. But, unfortunately, in between the fun, you need to consider the financial aspect of welcoming a little human into the world. From paying for their entire existence in the beginning stages of their life, you also need to adjust your own medical and insurance needs. It may sound daunting, but if you start to familiarise yourself with these important needs, it will give you a broader idea of what your needs are as a new parent.
For example, how are you going to protect this little bundle of joy? Well, one of the best ways to answer that question is through life insurance. This type of insurance policy will provide you with a financial safety net for your child’s future, in the event that something happens to you or your partner. If you are already paying a life insurance premium, you’re going to have to review it for your new, growing needs.
Here are some things to consider when looking to apply for or adjust your policy:
- Know the difference between term and permanent life insurance
Before you can consider making a decision on a plan that will suit your lifestyle, you first need to understand the difference between the two main life insurance plans. Put simply, permanent life insurance covers you for your entire life and term or ‘short-term’ provides you with coverage over a specific period of time. Before having children, many people opt for the term life insurance fee simply because it’s cheaper and they don’t have dependants. But, as a new parent, you should consider the permanent plan. You never know what could go wrong or what could happen to you, so give your child the safe foundation he or she needs for a protected future. After all, your policies affect your child’s ability to be supported and inherit money or assets in their life.
- Think about the price of education
Education is an expense that many parents don’t consider until they’re faced with it. And, although you might not want to feel as though you are planning ahead for a child who can barely crawl, it’s important to map these things out if you want to be able to offer your child the best possible education when the time is right. School and university fees are extremely expensive, and most parents are unable to offer their children that. But applying for life insurance will give your child the opportunity to go to school and acquire a tertiary education without you around.
- Even if you’re a stay-at-home mom, you need life insurance
Often times, people look at the breadwinner as the only value-adding individual in the house. But, actually, if you look at stay-at-home parents, they contribute just as much. In a situation like this, stay-at-home parents need to apply for life insurance even if they’re not earning an income. The reason for this is that the loss of a stay-at-home parent may mean that the surviving parent will have to cover all childcare costs which could jeopardise future savings for the child. Both parents are required to be on life insurance to help relieve any financial burden, should something go wrong.
- Select a family member as your beneficiary
Applying for life insurance doesn’t stop there. You need to ensure that you have set up the correct options to be able to offer your child the lifelong financial protection that they need. For example, do not assign your baby as your beneficiary on your policy. Because if something happens to you, your child cannot access that money. A better option would be to select a family member as your beneficiary to oversee the distribution of money.
- Speak to a life insurance agent
When it comes to selecting policies or wrapping your head around a credit life insurance fee, it requires you to speak to professional credit life insurance providers who will be able to guide you through your decision. It’s easy to review something over the internet, but when you don’t have a clear understanding of your needs, you could be selecting something that is detrimental to your child’s future. Start by educating yourself about the matter and then secure a meeting with someone who can assist you. They will be able to discuss each package with you, giving you a detailed idea of what to expect. They will also be able to work with your budget and choose something that suits your circumstances and your lifestyle.
As mentioned, becoming a first-time parent is exciting, however, it can also be stressful. Especially when it comes to understanding the insurance needs for you and your family. The quicker you start, the less you’ll need to worry later on in life. This is one step closer to a better future for you, your partner and your growing family. Make the change today and consult with a professional.