3 Frequently asked life insurance questions answered here for newlyweds and/or parents-to-be:
I will be a stay at home parent – and not generating an income – is it necessary for me to buy life insurance?
First off although there may not be a “paycheck’ for all the work that is done, there are most definitely costs associated with a nonworking parent. What would the compensation be if someone had to be paid to provide help with childcare, chauffeuring, tutoring, perhaps meal preparation and in general running the household? These are vital responsibilities and the replacement value is often greatly underestimated. A life insurance plan can take this into account to ensure that at a most difficult time the care and stability of the family would be looked after.
I have coverage though work, do I need more?
The best way to find out how much coverage you may require and if your life insurance policy through your employer will cover this, is to do a needs analysis. This can help with calculating your coverage needs. And, remember the younger you are the better rates. In addition, should you leave this place of employment will your coverage cease? By purchasing a separate life insurance policy in addition to what you have from your place of employment, can give you the security of knowing that wherever you go, your policy stays with you and will cover your needs.
What type of life insurance coverage should I buy?
Depending on your specific needs, there are two types of life insurance to consider:
Permanent life insurance – with whole life/permanent life insurance plans having lifetime security to cover expenses with tax-free benefits may be the right fit for you. There is also Term life insurance coverage, which is often 10, 20, 25- or 30-year terms. This is often chosen to provide financial security when there are major expenses to cover; for instance, a mortgage or a child’s education.
To find out how much coverage you need, try this life insurance needs analysis calculator. You do have a choice when it comes to buying life insurance, compare plans and what they offer. If you are looking for the convenience and ease to get covered without a medical test or needles and the speed of being able to get coverage in a matter of days, No Medical life Insurance may be the ideal choice.
Whether you are a newlywed or a new parent, if you haven’t already purchased a life insurance policy – now is the time.