The Importance Of Instant Life Insurance For New Parents & Parents To Be

Are you a new parent or a new parent to be? Well this post is for you because life as a new parent (or as a parent-to-be) can super exciting but also overwhelming and tough at times. Think about it…. you now have a new little one that is totally dependent on you whether that be changing diapers multiple times a day or getting up late at night for those night time feedings. All of these new responsibilities may have you feeling overwhelmed and thinking who has the time for things like worrying about life insurance? I totally get how you feel but am here to tell you that as a parent…. it’s essential to ensure that you have life insurance for your spouse and family members in the event that something were to happen to you. It is actually more important for parents to have that much needed life insurance than ever before and that’s why I wanted to share this handy guide. Below we will cover the key aspects of the importance of life insurance for both parents and parents-to-be to ensure that your family is financially secure. Let’s take a look….

Why Life Insurance Is So Important For New Parents

Life insurance is so important for new parents because having a baby brings about a myriad of changes that shake up your life for the better. Parenthood is the most amazing thing you can do but it’s important to understand that there will be lots of changes and challenges to be experienced over the years which is why it’s crucial to take a minute to reflect on the financial responsibilities that come with being a new parent. Life Insurance is so important as it serves as a safety net, ensuring that your family is financially protected in the event something were to happen to you. That is why ensuring you have life insurance as a parent is so very important.

Choosing The Right Type Of Life Insurance For Your Families Budget & Needs

There are different types of life insurance available, so figuring which works best for you and your families needs and budget is the first step. There are two main types of life insurance…. term life insurance and whole life insurance and below we will discuss the differences between the two.

Term Life Insurance

Term life insurance, or Instant Life Insurance, provides coverage for individuals for a specified period of time. Term Life Insurance can be purchased for 5, 10, 20 and even 30 years at a time….. it just depends on your preference and how long you want the policy to stay active. With term life insurance your beneficiaries receive a lump sum payout in the event that you pass away during the policy term. Term life insurance is the savvy choice for new parents as it offers affordable premiums all while providing customizable coverage too.

When selecting the length of your instant life insurance policy, it is important to consider the milestone’s of your child’s life, such as school, graduations, college and more. You will want to ensure that there is proper coverage to last until your kids grow up and are financially independent to ensure your family is adequately protected during these crucial times.

Whole Life Insurance

Whole life insurance is another form of life insurance that provides coverage for your entire lifetime, as long as you continue to pay your premiums. What sets whole life insurance apart from term life insurance is that whole life insurance includes a cash value component that grows over time and that you can tap into when you need it. It’s also important to mention that whole life insurance comes with much higher premiums as compared to term life insurance but it does offer lifelong protection as well. For new parents or parents-to-be, whole life insurance can be a long-term investment, which will provide protection and a savings option to the mix. Whole life insurance can be especially beneficial when planning for future expenses too….. such as your child’s education or for a down payment on a new home.

Assessing How Much Life Insurance You Need

The next step is to decide on how much coverage you need for your family. Assessing how much life insurance your family will need is a crucial part of the life insurance decision-making process and parents and new parents should take these tips into consideration……

*Debt Repayment: It is important to figure out all of your outstanding debts, such as mortgages, car loans, and student loans to name a few. Life insurance can help to settle these obligations which will keep them from becoming a future burden on your family.

*Childcare & Education: It is also important to consider and factor in the costs associated with childcare and your child’s education including daycare, extracurricular activities and even tuition fees.

*Income Replacement: Life Insurance can also help to replace income in the event something were to happen to you. It is important to consider the financial impact that your absence will have on your families daily expenses. Life insurance is a great way to help replace lost income, which will ensure that your partner and children can maintain the quality of life you have provided them all along.

*Emergency Fund: Life Insurance is also a great way to set aside some extra finds to be used as an emergency fund. This can help to cushion and provide additional financial support for any unexpected expenses.

*Funeral Expenses: Life Insurance can also help to cover funeral and burial expenses and this is a huge one as it will alleviate the financial stress during an already tough time for any family.

Tips For Getting The Best Life Insurance Policy As A New Parent

So here are a few tips to ensure that new parents and parents-to-be get the best life insurance policy for your needs and one that does not break the bank and that fits your budget. Here are some new tips to getting the best price on your life insurance coverage…..

*Purchase The Policy When You’re Young

The best tip when getting a life insurance policy is to start early. The younger and healthier you are, the lower your premium and fees will be. You may also be able to lock in low rates all while providing the long-term financial security you want for your family by starting early too.

*Quite Smoking

If you’re a smoker…. you will want to quit ASAP. Smoking can make your life insurance policy much more expensive, so quitting this bad habit will save you money and your health too.

*Live A Healthy Lifestyle

Living a healthy lifestyle, which includes clean, healthy eating and regular exercise, can for sure positively impact your overall health which can mean lower insurance premiums too.

*Shop Around Online

It is important to shop around online…. just as you do for everything else to ensure you get the best deal for your budget and needs. Insurance providers have various underwriting criteria and pricing structures so this is super important if you want the best deal possible. By simply spending a bit of time, shopping around and obtaining quotes from several insurers, you will be able to find the best insurance policy to fit your needs and budget.

*Bundle Your Policies

It is important to mention that some insurers offer discounts when you bundle your life insurance with other insurance policies, such as home and/or car and auto policies. Definitely check this out to when doing your research as this will maximize your cost savings.

*Regularly Review & Update Your Policy

I also want to mention that it is important to regularly review your life insurance (and other insurance policies) to ensure that it fits your families ever evolving needs. There are sure to be life changes, such as a growing family and /or changes to income, that may require adjustments to your coverage.

As new parents or new parents-to-be, making sure to prioritize your families financial security is of the utmost importance. Life insurance is the key to doing just that as it offers peace of mind and protection for the ones you love most. Whether you choose term life insurance for its affordability and ease of purchase or whole life insurance for its lifelong coverage, the key is to pick the policy that fits you and your families needs. Remember to assess your needs, start early and explore the many ways that you can find affordable coverage to suits your needs. Life insurance will be the biggest and most valuable investment you can make for you and your families future so start doing your research and get that much needed coverage today!

This post is a collaboration between Deliciously Savvy & Responsival and all opinions are 100% my own. Thank you for stopping by and make sure you enter a giveaway or two before you leave! Good luck!