Once you become a parent, the future takes on a totally different view. Now, there is another human being who is wholly dependent on the decisions you make for his or her future well-being. Parenthood is often a catalyst for purchasing a life insurance policy, so choose one that makes the most financial sense for your family.
Life Insurance for New Parents - Choose Wisely
There are two types of life insurance: term life and whole life. Term life policies are purchased for a specific amount of time, usually 10-30 years. They are the most affordable type of policy. Whole life policies are more expensive but, unlike term policies, they also act as a type of savings account and the money you save is available throughout your lifetime.
In most cases, couples only need to purchase a term life insurance policy, with the goal of paying off a mortgage, college tuition and any outstanding debts. When children are very young, a term like policy might include a little extra money to ensure your children's needs are taken care of should anything happen to you.
Things to keep in mind when purchasing life insurance for new parents:
- The older you are the more expensive the premiums will be so the sooner you act, the lower the rate will be for the lifetime of your term.
- Meet with a financial adviser to determine the best policy pay-off so you aren't over- or under-insured
Contact CCW Insurance to discuss life insurance for your family.
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