Expecting moms who think of life insurance should know answers for some important questions. Let’s walk together through it.
- What type of life insurance coverage is best for new parents—term or permanent? To answer this question first you have to understand how much death benefit you need to protect your family. You can do an easy calculation online with one of many Life Insurance Calculators.
- Then you can move on to what kind of coverage—term or permanent—you need. An advantage of term life insurance is that it costs less than permanent, at least initially. This makes it affordable for young families that may not have a lot of money to spend, but have a large need for coverage. On the other hand, permanent insurance provides both lifelong coverage and a cash accumulation feature, which can be a valuable source of money that you can tap in the future.
- Do stay-at-home moms need insurance? A stay-at-home mom isn’t compensated for her work, if something were to happen to her, it would be expensive to replace all those things she does—from childcare to home care to ensuring the family gets where they need to go.
- The company where I work offers life insurance, is that enough? Group insurance is a great benefit to have, but it’s limited in a number of ways. First, the coverage is often a lump sum, such as $50,000. That may sound like a lot of money, but think how long would that money last? Second, when you leave that job, you generally lose that coverage. If you don’t have an individual policy that you own, you’ll be leaving your family at risk.
- Are there any restrictions I have to consider now that I’m pregnant? If it’s early in your pregnancy, and there are no medical complications, you should be able to get life insurance. If you’re farther along and there are medical issues, it may difficult to obtain. The life insurance company may want to wait until after your child is born. That’s why it is wise for those that are planning to have children to get the coverage as soon as possible.
- How much you pay for life insurance is based on a number of things but most importantly age and health. So start your policy while you are young and healthy.
The source post by Marvin H. Feldman in available at https://lifehappens.org/blog/5-questions-expecting-moms-have-about-life-insurance/