by Allison Teetsel on Mar 3, 2015
Are you expecting a child? Considering life insurance? Great! If you’re new to the process, you probably have a few questions. Here’s a look at some of the commonly asked questions expectant parents have about life insurance (and their answers).
Both term and permanent coverage have their benefits. First, you must determine how much of a death benefit you need to protect your family. Then, look at your household’s overall needs. Are you a young family with a limited disposable income? You may benefit from term life insurance, which initially costs less than permanent. If you’ll need a source of money that you can tap in the future, permanent coverage may be better for you. Perhaps a combination of term and permanent is best. To learn which type of life insurance coverage is best for you, contact your insurance agent.
Both working and stay-at-home parents provide something valuable to their families, and it’s important to consider these things when looking at life insurance. While a stay-at-home parent isn’t compensated for their work, if something were to happen to them it would be very expensive to replace all of those things – from childcare to housekeeping to transportation and beyond.
A working parent may contribute an income that the family relies on. It is important to consider that income when deciding how much life insurance coverage they need.
Short answer: Probably not.
Group life insurance is limited in a number of ways. First, the coverage is relatively low – a lump sum of $50,000, or 1-2 times your salary. That may sound like a lot of money, but how long would it last? Would your family be able to cover all of their expenses? What will happen when the money runs out? Group coverage usually applies only for as long as you have your job. Without an individual policy that you own, you’ll be leaving your family at risk.
If it’s early in your pregnancy and there are no complications, you may be able to get life insurance. If you’re further along and there are medical issues, it may be harder to obtain coverage. Your insurance company may want you to wait until after the baby is born. As a result, it’s usually best to get coverage as soon as possible.
There are a number of factors that come into play, such as your age and health. Here's an example: A healthy 30-year-old woman could get $250,000 in life insurance coverage (for a 20-year level term policy for a nonsmoker) for just 41 cents a day.
To learn more about life insurance, contact your insurance agent today!