I heard a tragic story the other day. A mother of six passed away from cancer only three months after her sixth baby was born. The poor six children and their father are now left without a mother and a wife, both grieving and struggling financially. It’s such an awful situation and when I mentioned how important life insurance is to help ease any financial burdens in these terrible situations, it turns out they had cancelled their life insurance when baby six was on the way as a way to try and cut costs for the new baby’s arrival. At this point, they had no idea about the cancer and how little time mum had left. If ever there was a lesson to realise why life insurance is so important for new parents, then this heartbreaking story is sadly it. Whether you are new parents or already have children, if you don’t have life insurance already, then you should seriously consider it. No one knows what is around the corner, good or bad. Read on to see why you should make budgeting for life insurance a top priority as a parent.
Life insurance protects your children’s future
A life insurance plan can protect both parents and their children from financial burdens in case of tragedy. It’s no secret it’s expensive to raise children and it can be particularly difficult if an entire wage is lost. Life insurance can provide funds to cover your children’s education, any medical and dentistry needs and ensure they continue to receive the same financial standard of life. It provides a sense of security and ensures that the next generation has the best chance at success even if a parent sadly dies.
Life insurance can pay off outstanding debts, including a mortgage
Many people take out joint debts when they have children such as car finance, mortgages, home improvement loans and so on. These debts are taken out with the consideration of both parents income and roles at the time and might be difficult to repay if there’s only one of you. Life insurance can provide the peace of mind needed to cover these debts and repay them in full should one of you pass away.
Life insurance can provide an inheritance for your children
In the most awful circumstance that both parents lose their lives, life insurance can provide an inheritance for your children. It can be used to pay off your outstanding mortgage and leave your home to your children. Or it may provide a lump sum for your children when they are older. On this note, it’s also very important you make a will to decide what happens to your estate when you die and who will become the guardian of your children. It’s never nice to think about, but it’s so important.
Life insurance can provide financial stability for your other half
Life insurance can protect your loved ones financially if you were to die unexpectedly. As well as covering debts and providing for your children’s future, you can also ensure your other half is financially sound or even has money for retirement. A lump sum can ensure they don’t have to worry about finances whilst raising the children without you. Life insurance means that even if one person earns less than another, they can still be protected financially in case their partner passes away prematurely or has an accident.
Life insurance can cover funeral costs
Many people don’t think about life insurance and how it can help cover funeral costs. If you purchase a life insurance policy and something happens to you, some of the payout can be used for your funeral expenses as well as providing for your family. Some policies allow you to choose an extra funeral cover as an extra payment that covers funeral costs, or you can allow for it in your overall life insurance payout. Funerals can cost thousands and are another financial stress you wouldn’t want to leave your family with if they have no means of paying these costs.
Ultimately, life insurance protects your loved ones
We all live in a world where the unexpected is always a possibility. We need to be prepared for that. Ultimately, the main reason that new parents should consider life insurance is to protect their loved ones. If they were to die, their family members might be left without an income source. If they had not planned ahead with appropriate coverage, this could lead to financial hardship and loss of other benefits like health care or education.
Getting life insurance as new parents can be quick and easy
It’s easy to search online for the best life insurance for parents and compare quotes and policies from different providers, finding the one that most suits your needs and budget. There are various types, so do your research. When you speak to a life insurance company, they will also take the time to explain to you the different levels of cover.
If you are reasonably young and have no serious health conditions now or in recent years, then you should qualify for life insurance with no waiting period. This means you can get covered right away. If you have had certain health conditions in the past few years then you need to declare these at the point of application and it may be you have a waiting period of say 12 or 24 months before the policy will payout. This means if you die before this period, the policy won’t payout.
In my experience, my husband and I have taken out life insurance twice and we have been covered from the moment we have accepted the quote and made the first payment.
Make life insurance a priority when you become a parent
When you have a new baby, life insurance might not be the first thing on your mind. However, it’s important to have life insurance to provide for your family in case something happens to you. Life insurance can ensure your other half and children can maintain their current lifestyle should the worst happen and vice-versa. It will ease any financial burden at an already tragic time helping to cover funeral costs, debts, bills and day-to-day living costs in the short term or long term depending on the policy cover you choose.