Life insurance for new parents

While it is an exciting time, many new parents also find the birth of their child terrifying.  Having a baby that is completely reliant on you is something that very few people are completely prepared for.  However, there are certain things that you can do to make sure that your child is cared for.  For instance, securing the right life insurance will ensure that they are taken care of financially, no matter what happens to you and your partner.  Here’s what new parents need to know about their life insurance.

  • Buying Life Insurance

Many new parents put off getting life insurance because it feels too overwhelming and stressful.  However, the process of securing coverage is actually pretty straightforward.  This is especially true if you are applying as a young, healthy individual.  When you secure life insurance early, you have an easier time passing medical exams and can also lock in cheaper rates.  Now that most insurance companies allow you to request a quote online, there’s no reason to put off this coverage.

  • Life Insurance for Stay-at-Home Parents

Many people assume that stay-at-home parents do not need life insurance because they don’t earn a salary.  However, this is not the case.  While stay-at-home parents do not earn money for the work that they do, their labor is still valuable.  Because they remain at home to watch the children, clean, cook, and run errands, the other parent is free to go out and earn a salary.  If the stay-at-home parent were to die, then their partner might have to pay someone to handle these responsibilities.  When the stay at home parent has life insurance, then their death benefit can cover the cost of childcare and household help so the remaining parent can continue to work.

  • Don’t Rely on Employer-Offer Life Insurance

Many employers offer life insurance as an employee benefit.  As a new parent, you should take advantage of this perk.  However, the coverage that your employer offers is limited.  Typically, an employer-offered life insurance policy only offers coverage equivalent to one to two times your annual salary.  As this will not be enough to support your family for an extended period of time, it’s best to supplement employer-offered life insurance with a personal policy.

This is what new parents should know about life insurance.  Do you have additional questions about your coverage?  If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California.  We are ready to assist you with all your coverage needs today.