Expecting your first child isn’t just exciting it’s a life-changing event that will impact your life in amazing (and occasionally scary) ways!
Giving birth to your new baby marks the start of a new chapter in life, where you suddenly become responsible for the care and wellbeing of another human. As a parent your priorities will quickly shift to adapt to this new role in your life, but there is one key way that you can plan for the long-term care of your child before he or she even arrives. Life insurance.
Life Insurance Should Be a Key Part of Family Planning
Planning for the birth of your first baby can feel overwhelming, there’re a million things to learn and a hundred items to add to your to-do list every day. So it’s totally understandable if financial planning never makes it to the top of your task list! However, at IntelliQuote we recommend that you set aside some time to seriously look at your finances and life insurance options before your baby arrives. As a parent we sign up to provide love and care to our children for as long as they need us and while the love aspect is free it can be very expensive to care for our kids.
You’ve probably already planned for how you will pay to care for your children, but what would happen if you or your partner were to pass away unexpectedly? Would your partner be able to afford everything they need? If you were both to pass away have you designated a guardian to care for your child and provided the money they need to do this? If any of these questions make you nervous about the long-term financial security of your family it’s time to consider life insurance.
Life Insurance Option For Expectant Moms
Although changing life insurance during pregnancy is possible you may find that it becomes more complex during the second and third trimesters. This gives you a number of options:
One, you can change life insurance during your pregnancy to ensure that you have adequate coverage in place. People often wonder if you can get life insurance when you are pregnant? The answer is yes but you’ll probably pay slightly higher premiums to secure the coverage during pregnancy, however you can change policies after you give birth to make sure you’re getting the best-priced coverage.
Two, if you prefer to avoid changing life insurance during your pregnancy you can wait until you give birth to secure coverage. However, there is risk involved with this plan and we recommend that you secure coverage as soon as possible, to avoid leaving your child and partner without financial security.
Why Both Parents Need Life Insurance
It’s a common misconception that only wage earners of a family need to have a life insurance policy. However, it’s also important to consider the value that stay at home parents bring to the household. Caring for a home and family can be a full time job, from cooking and cleaning to childcare, each task completed by the stay at home parent has a value. To understand how much a stay at home parent contributes to the home you should calculate how much you would need to pay to have a professional complete all of the services. Once you calculate these costs you’ll better understand the economic value of stay at home parents.
What Insurance is Best for Pregnancy
There is no right answer for the question: what insurance is best for pregnancy? This is because every family has different life insurance needs. However, there are some key differences between policies that can help you decide what type of life insurance plan is right for your needs. There are two main types of life insurance available:
Term life plans offer life insurance coverage with a guaranteed level premium for a set period of time known as a term, common term lengths include 10, 20, and 30 years. People commonly use this type of policy to provide money for childcare, mortgage payments, education costs, and income replacement. These policies offer the lowest cost coverage and are more affordable.
Whole life plans provide coverage for life, which means that they are guaranteed to pay out as long as the policy is kept active. Because of the guaranteed payment these types of policies are significantly more expensive that term plans. People commonly choose whole life plans to pay for end of life expenses, as a tax-free investment option, and to leave a legacy.
For many parents the cost advantages of term life insurance will outweigh the benefits offered by whole life plans. However, it’s always a good idea to explore all options to help you make an informed decision!
Can you buy insurance for an unborn baby? No, this isn’t possible but you should have the option to add a child rider on your policy when they are born.
Finding the Right Plan
One of the most important steps to take when shopping for life insurance is to compare plans from multiple insurers. Quotes and policy availability can vary greatly between insurance companies, which means that comparing quotes could end up saving you thousands of dollars over the life of the policy. IntelliQuote is an online insurance marketplace that lets you compare multiple quotes from the best-rated insurers in the US in just a few minutes. Use our online quote form to get started!