subject: Thinking about Starting a Family? You Need Life Insurance [print this page] A new baby is so special! Most couples plan a family only when they know they are financially stable. However, for many a life insurance plan doesn't figure at all! Why stave off a life insurance purchase? When you plan a family, one of the first things that needs to be in place is a life insurance policy.
Life insurance is purchased to protect one's family and ensure that they are taken care of if the unimaginable happens. It is the best thing that a family can possess. It can ensure peace of mind for the breadwinner and the stay at home spouse knowing that they have something to fall back on if one of them passes on.
Why buy a policy when you are still planning a family?
Most people know the importance of having a life insurance policy. Yet, they stave off a life insurance purchase until after the kids are born. Here's why you need to buy now when you are still planning a family
Life insurance is cheaper when you are younger. If you wait until a child arrives, you will be at least a year older, with possibly higher premiums. When you buy now, you can lock in lower premiums.
Life insurance underwriters consider a pregnancy a health risk, and pregnant women get insured at higher premiums. To avoid a situation like this, it makes sense to buy when you are planning a policy.
Even stay-at-home spouses need life insurance. Once a baby arrives, a family may not have the time to shop around for policies and make a well-informed decision. A mother may not be in the best of shape after having a baby. That is why a policy needs to be in place before a couple thinks of starting a family.
When a couple thinks of a family, they also think of a nice home where kids can have room to play. Buying a home means having to pay a mortgage. Life insurance policies can be planned to include the outstanding value of the mortgage too, so that a couple feels secure.
Having kids is an expensive outlay. Baby food, clothes, child care, babysitting expenses, etc can eat into your monthly budgets and dissuade you from even thinking of life insurance for fear that it may be too expensive. Even if you buy life insurance at this point, there is a chance that you may buy for an amount lower than what your family really needs. On the other hand when you are still planning a family, you are in a better frame of mind to work out the correct amount of coverage.
Every parent wants their kids to go to college and get employed. A life insurance policy is a great way to ensure that your kids can get a college education. The sooner you plan this out, and buy a policy the better and more prepared you will feel about having children.
Why should you consider term life insurance at this stage in your life?
Term life insurance is a great insurance plan for couples that are planning a family. Here's why
Premiums are low and affordable, yet you do not compromise on a policy amount. The low premiums are important because when a baby comes along, you will have so many other expenses eating into your monthly budget. With term life insurance you can be sure that you can still manage the monthly premiums and there is no danger of your policy lapsing because of unpaid premiums.
Term life comes with very attractive options these days. A Return of Premiums term life policy for example will return all your premiums if you outlive the term. The conversion and renewal term policies give you the option to either convert your policy to a permanent one or renew your term when it lapses. This gives you the flexibility to direct your insurance plan in the path you are most comfortable with, given the state of your finances a few years into the policy.
A life insurance policy ensures peace of mind
The main aim of buying a life insurance policy is to protect your dependants from financial strife in the event of your death. When you have life insurance you can work on achieving the dreams you have for your family without any worries. An economical yet effective policy type like term life insurance can be an invaluable addition to your family. Keep the American dream alive for your unborn family.
Thinking about Starting a Family? You Need Life Insurance
By: Denise
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