Having a child can be a brilliant and life-changing event, but it can also act as a reminder that you have a whole new set of responsibilities that stretch beyond you and your partner. When your family starts to grow, you might find that you have some important decisions to make.
From sending your child to the right school to feeding them a healthy diet, you no doubt want to do everything you can to protect them.
With a new year around the corner, you may have already started thinking about your New Year’s resolutions. Having children may cause you to re-evaluate your priorities, and with that in mind, you should ensure you have protective measures in place for your children’s future.
Life insurance for new parents should be at the top of your list for resolutions in 2020. Here we take a look at a few reasons why, and how to get the right policy for your new family.
Why should new parents get life insurance?
If you have a house and children with your partner, and you do not already have life insurance, you should make it your New Year’s resolution to take out a policy. This is because unfortunately, you never know what is around the corner and you need to make sure your family is protected in the event of your passing.
You might already have a growing list of expenses thanks to your extended family, but life insurance for new parents does not have to be expensive.
Life insurance for new parents can help with a huge number of things should you pass away. This includes mortgage repayments and childcare costs. Would your other half be able to keep up with the day-to-day living costs without you? If not, life insurance can provide that financial support.
What is the right life insurance policy for new parents?
When you take out life insurance, you have the power to decide on how much cover you would like. For level term life insurance, you can choose the length of the term and the pay-out amount. This, in part, determines your monthly premium.
It is important that you make sure your policy will cover you for everything you need, including the expenses mentioned previously. Mortgages and childcare can be two of the biggest outgoings for families, including children’s education. If you are the main earner in your family, you should also take this into consideration when deciding on the payout.
You might also want to consider additional cover alongside your life insurance for new parents. You could be more likely to suffer an illness than actually pass away, and this could have a devastating financial impact on your family. If you had to give up work in order to recover, would your family cope?
Policies such as critical illness cover and income protection insurance can be taken out alongside a life insurance policy, and it may be worth thinking about if you want to ensure ample cover.
This is a contributed post