A Few Things To Consider When Contemplating New Parent Life Insurance
There are so many changes and impending responsibilities with a new child. One big concern is what will happen to this innocent child if something should happen to you or your spouse.
New parent life insurance is critical to ensure that your child is taken care of if something happens to you or your spouse. There are many things to consider when investigating your options for life insurance.
Both Parents Need a Policy
The breadwinner in the family needs the policy to protect the family in the event of their untimely death. However, even the parent who is not the breadwinner or is a stay-at-home parent needs a policy. This person contributes significantly to the family. Should something happen to the stay-at-home parent, their skills will need to be replaced. This will require financial means to cover the responsibilities of this parent.
Types of Policies
The two main policy types are term life insurance and permanent life insurance. Term life is a policy that covers a specific timeframe. Permanent life is a long-term policy that has no time limits and will payout regardless of the timing of your death.
Determine the Beneficiary
Name a spouse as a beneficiary or set up a trust with someone who you can rely on as the beneficiary. If you name your minor child as the beneficiary, the insurance will have to wait until a court-appointed guardian is in place before the money is distributed.
Researching options is important when looking for new parent life insurance. Investigate thoroughly to make sure you have the best coverage for your family.