Oct
23
2008
Term life insurance for new parents
Author: Byron UdellAs parents, you do everything you can to show your kids how much you care about them from the day they are born. Yet, purchasing life insurance is something that is often overlooked.
Life insurance is an obvious “must have” if you’re the breadwinner of the family. But imagine if your spouse should pass who will take care of the children, drive them to baseball or cook? Just because you don’t earn a salary doesn’t mean you don’t make a financial contribution to your family. According to a recent survey, most people value the services of childcare, cleaning, cooking and other important tasks at over $40,000.
You want to make sure even if you’re not around, your family has enough diapers, diplomas, and everything in between.
The average adult American with life insurance coverage has equal to only three times his or her annual salary, which would be gobbled up in a flash by unpaid bills, taxes and other expenses.
Term life insurance is often the best bet for new parents on a budget. It covers you for a set period of time. The premiums are relatively low. On the other hand, permanent life insurance covers your whole life. However, premiums for permanent life insurance as much as ten times higher than those for term life insurance.
Contrary to what you might think, it’s sometimes cheaper to get your own individual life insurance policy rather than buy into your company’s group plan. That’s because group plans cover individuals who are older and in poorer health than you, which bumps up the premium each person pays. Also, the life insurance policy is not portable, meaning if you leave your job, you lose your coverage. Comparing life insurance rates and finding an affordable life insurance plan is easy.
October 24th, 2008 at 9:36 am
I completely agree with you. When my wife and I had out first child we sat down and both applied for life insurance protection. My wife purchased 30 year term life and I got a small permanent life policy and a larger term life plan for coverage for a term of 30 years.
It really is affordable, especially if you’re healthy, to get term life insurance. and, I read recently that rates for term life insurance are much lower than they were 10 years ago.