Today's guest post is everything you need to know when thinking about life insurance after having babies. I can say for us personally we took longer to get to it than we really should have.
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Life insurance may not
have been a topic that crossed your mind when you were single and childfree,
but now you’ve started a family and have a baby relying on you, everything
changes. You will want to make sure that your little one is well protected and looked
after if anything were to happen to you, and getting life insurance coverage is
one of the best ways to do this.
How Life Insurance Works:
Life insurance pays money to a chosen beneficiary, such as
your spouse or child, when you die. This payout is known as a death benefit.
For example, if you buy a $1 million policy during your life and name your
spouse as a beneficiary, this amount will be paid out to them in the event of
your death if you die when the insurance is still in effect. This money can
then be used to support the family in your absence, allowing your spouse to
easily cover costs such as sending the kids to college, paying off the mortgage,
and more.
Types of Life Insurance:
There are many
different types of life insurance policy, so it’s important to choose the right
one for you and your family.
Term life: This is
temporary and the most affordable type of life insurance. You can get a lot of
coverage at an affordable price which is used to cover a certain time period,
for example ten, twenty or thirty years. If you die during the term, the policy
will pay out to the beneficiary. However, the coverage will stop at the end of
the term and nothing will be paid out if you’re still alive.
Permanent life: This
type of life insurance will last for your entire life and will pay out whether
you die in the next five or fifty years. There are various types of permanent
life insurance to choose from such as whole, universal, variable and indexed.
These policies are more complex compared to term life insurance as they also
include cash value, which is a tax-deferred amount that slowly grows throughout
the policy. You can find out more about the different types of life insurance
at insurancegeek.com; and choose the best option for you at insurancegeek.com.
Why Both Parents Need Life Insurance:
If one parent’s income
is higher than the other, or one parent stays at home, then you might believe
that it’s only essential for the working or higher-earning parent to get life
insurance cover. However, this isn’t always the case, and even stay-at-home parents can benefit
from cover. This is
because even if one parent is not going out to work, they are still providing
valuable benefits to the family such as child care and domestic tasks that
would need to be replaced in the event of their death. A life insurance policy
would enable the other parent to cover the cost of these tasks easily, or even
take an extended time period from work while the family readjusts.
If you’re a new
parent, there are several reasons why getting life insurance should be a top
priority.
