If you are having a baby, life insurance might not be something that is on your mind, but it should be! Soon you will have a beautiful newborn baby relying on you and this can change many different aspects of your life, and looking for new insurance coverage is no exception. Here are some typical questions that we have heard over the years from expecting mothers about their insurance.
What type of insurance coverage is the best for expecting parents? Term or permanent?
Before you can know what kind of coverage you need, you would need to understand how much death benefit you need in order to protect your family. You can easily calculate this online to get a working idea of how much you might need. Then you can move onto figuring out what kind of coverage (term or permanent) meets you and your family’s needs. One advantage of term life insurance is that it costs less than permanent in the beginning. This might make it more affordable for young families who might not have a lot of disposable income yet, but need coverage. Permanent insurance gives both lifelong coverage and cash accumulation, which is a valuable source of money you can use in the future.
Is there a difference in coverage between a stay-at-home mom and a working mom?
Working moms aren’t the only moms who need coverage. Stay-at-home moms should get coverage as well. Stay-at-home parents provide valuable child care services, which a surviving parent would need to pay to replace. A life insurance payout can also enable the surviving parent to take a few years off work while the family regains footing.
Is group insurance offered by my job enough life insurance coverage?
Group insurance can be a great benefit, but it can also be limited in a number of ways. Firstly, the coverage is provided as a lump sum. The problem with this is how long the money will last and what will your family do once it’s gone? Secondly, if and when you leave that job, you will usually lose that coverage. If you don’t have a policy on your own, you will be leaving your family at risk during that period of time. If you think about how often people switch jobs, this can leave group insurance looking limited. It cannot take the place of a proper life insurance plan.
Will there be any restrictions to consider as an expecting mother?
If you are early in your pregnancy with no complications, it should be relatively easy to find life insurance. But if you are further along and experiencing medical issues, then it can make things more difficult. The life insurance company might want to wait until after your child is born. This is why we recommend that if you are planning to have children, you should get coverage as soon as possible.