Having a Baby? It's Time to Evaluate Life Insurance Needs

If you and your significant other are about to have your first baby, life insurance may not be top of mind. Many couples find that there are plenty of things that cross your mind and that seem more important than life insurance, such as purchasing a crib and baby furniture, clothes, diapers, car seats, strollers, and so many more important items. There are innumerable things that cross your mind when you're about to become a parent. Not only do you have to buy those necessary items for your baby, but you are probably also thinking about day care, school districts, whether your house gives you room to grow, and more. However, there are many times in life that life insurance does need to be top of mind. Life changes, or Pivotal Moments, give people an opportunity to realize that their current life insurance coverage might not meet their family's needs - especially if your family is growing! Life insurance can be a difficult topic to talk about for some of us, but being fully in
sured is a great way to make certain your family's future is secure.

As you enter into the world of parenthood, you should be thinking about life insurance sooner rather than later. For many new parents, it's likely that you don't have enough life insurance coverage, or you won't have enough if you wait to buy until after your baby is born. Some people are lucky enough to have a life insurance policy provided through their employer, which is a great start. But considering additional life insurance is a great idea.

When it comes to life insurance, you want a safety net that is big enough for every need your family might have if you were not there to care for them. So really, when you are having a baby, there are several life insurance questions to consider - do I have life insurance? and, do I have enough?When considering the right life insurance for you and your family, it's important to remember that your life insurance plan should be just like you and your needs: unique. Each family's life insurance need is different, so instead of just guessing what you should have in life insurance coverage, you should work with an insurance provider who understands that the needs of your family are unique to you.

Let's start by discussing the basics of life insurance. There are two basic types of life insurance policies - permanent and term - with ways to potentially personalize or modify each type of plan based on your needs and goals for the future. Permanent life insurance policies run from the time of purchase until the end of the policyholder's life, regardless of age. These policies tend to be more costly, in part because of the wide range of coverage. Many permanent policies also come with investment options, which can provide some extra long-term financial security. On the other hand, term<a href="http://www.pivot.com/Pivotal-Moments/Having-a-Baby"> life insurance</a> policies are typically less expensive than permanent policies, but only cover a specific time period - for example, from purchase to age 65. These policies are typically less expensive due in part to the fact that they insurance you for a more limited amount of time.

Next, let's discuss how much insurance is right for you and your family. As we mentioned before, each family's needs are different. However, a typical industry rule of thumb is to start calculating your life insurance needs by planning to purchase enough life insurance to replace five to seven years of your salary at an absolute minimum - or more if you can afford it. In addition to this consideration, it's important to keep in mind that many families today have a mortgage, car payments, and other monthly bills. And, if you have a baby on the way, there are college funds to think about too, and extra healthcare, among other extra expenses. If you want to cover these expenses in addition to your salary, you should work with a professional to calculate the estimated life insurance coverage you will need. And of course, there are ways to estimate these costs for the future by using life insurance calculators in addition to expert-level advice. But it bears repeating that this is
where a life insurance professional's help comes in handy. If your goal is for your family to maintain their current lifestyle in the event of your passing, it's crucial to work with an educated and trusted advisor who can calculate the coverage that's right for your family and leave no room for error.

Thinking about life insurance when you're about to have a baby can seem intimidating for many people. However, it shouldn't be, for a few reasons. First, life insurance is one of the most meaningful things you can do for your family to show them how much you love them. What better way to show your love than to take steps to make sure your family is covered and comfortable in the event of your passing? And second, when you have the ability to work with a trusted and experienced life insurance industry professional, you can tackle your biggest life insurance questions head on. No matter what your situation is, your life insurance professional will help you sort through it and decide on the coverage that best fits your needs and budget.

And it simply must be repeated that most importantly, when you are considering the specific life insurance coverage that's right for you and your growing family, you'll want to work with an insurance provider who you know and trust, and who understands your needs. Resist the urge to do a quick internet search and buy the first life insurance policy that you see online. Deciding on a life insurance plan is a serious decision, with lots of aspects to consider, both financial and personal. So it's important to work with a life insurance provider who can help you uncover what's right for you and your family's future. After all, your life insurance expert is here for you to be an advisor and consultant, so you can focus on all the other tasks you have ahead of you before your baby arrives. If you have a baby on the way, reach out to a<a href="http://www.pivot.com/Pivotal-Moments/Having-a-Baby"> life insurance</a> professional today!