When you’re thinking about having a baby, life insurance may not be top of mind for you. After all, there are so many things that cross your mind – and wind up on your to do list – when you’re about to become a parent. Just a few of the things you might have to do are select car seats, strollers, a crib, daycare and more. However, there are several times in life when life insurance should be top of mind for you. When you come across major life changes, or Pivotal Moments, you have an opportunity to realize that your current life insurance coverage might not meet current family needs – especially if your family is growing. That’s why your local life insurance expert is here! Life insurance can be a difficult topic to talk about for some of us, but in your area you can find a life insurance expert who is ready to talk to you about your family’s needs. Being fully insured is a great way to make certain your family’s future is secure and that you have peace of mind as your new baby enters your life.
Did you know that more often than not, new parents don’t have enough life insurance to cover the addition of a family member? Even with life insurance policies provided through your employer, that coverage often does not work when you add a newborn to the family. Therefore, purchasing additional life insurance is a great way for you to secure your family’s future. After all, when it comes to life insurance, you want to create a safety net that is large enough for every need your family might have should the unthinkable happen and you pass away. When you are adding a baby to your family, there are several life insurance questions to consider, such as: Do I have life insurance? If I have life insurance, do I have enough? What would it take to cover my family’s financial concerns if I were no longer alive to provide for them?
Your life insurance plan should be just like you: unique. Each family’s life insurance needs are different, so you should work with an insurance provider who understands that the needs, hopes, and dreams that belong to your family are unique to you. It’s also important that you understand the basics of life insurance, so that you can make an informed decision about your family’s future.
So let’s discuss the basics of life insurance. There are two primary types of life insurance policies, and there are ways to personalize each type of plan based on your family’s needs. Permanent life insurance policies run from the time of purchase until the end of the policyholder’s life, regardless of the age you are when you purchase the plan. Two variations to permanent life insurance are whole life insurance and universal life insurance. Whole life insurance combines your life insurance policy with an investment fund, and universal life insurance combines your policy with a money market investment. On the other hand, term life insurance policies are often less expensive than permanent policies, but term policies only cover a specific time period – for example, from the time of purchase to age 65. For a term life insurance plan, there is no investment component which often makes term policies more affordable for many people. If you decide to go with a term life insurance policy, it is imperative that your length of coverage is carefully planned and calculated to your family’s specific needs. Working with a life insurance specialist will help you ensure that your family is covered no matter which type of life insurance policy you decide to buy.
So, do you know how much insurance is right for you and your family? While each family’s needs are different, a typical industry standard is to purchase enough life insurance to replace five to seven years of your salary at a minimum. Knowing this, it’s also important to consider that many families have to also have the financial ability to cover their mortgage, car payments, college tuition, and other monthly bills. So you may need to buy additional life insurance coverage to make sure that these costs are covered. Ideally, your goal in buying a life insurance policy should be for your family to maintain their current lifestyle in the event of your passing. While this may be a difficult concept to grasp for many people, life insurance advisors at Pivot specialize in this type of knowledge. Approaching life insurance from the perspective of wanting your family’s lifestyle to remain constant even if the unthinkable should happen, it’s easy to see how important it is to work with a trusted life insurance provider. We’ll use industry knowledge and proven results to find the life insurance coverage plan that’s right for you and your family.
Having a baby is a monumental change – a Pivotal Moment. You are about to bring another life into this world, and this newborn is going to depend solely on you for everything. And as a new parent, you’ll have so many things on your mind. Between midnight feedings and finding the right daycare, you shouldn’t have to worry about your financial future. Having the right life insurance coverage is crucial to your peace of mind as a new parent.
As you prepare for your new baby, you’ll likely be checking things off your to do list. Make sure one item on your list is to call your local life insurance advisor. They will listen to your needs and plans for the future, and will provide you with life insurance options that work for your budget and lifestyle. When it comes to life insurance, it’s important to work with an insurance provider who you know and trust, and who understands your needs. Life insurance is a serious decision, with lots of aspects to consider, and by working with a trusted advisor, you’re making a great decision for your family’s future. Call your local advisor today to find the right life insurance plan for you and your growing family.