5 Common Questions Expecting Mothers Have About Life Insurance

/ Life Insurance / Apr 15, 2022

If you are an expecting mother and are considering getting a life insurance plan, the first thing we would like to say is congratulations; you are taking the right step!

But if this is the first time you are looking for a coverage, you might have a number of questions – here are a few we have typically heard from our clients.

  1. Why type of insurance should I go for as a new parent – term life or permanent?

Before figuring out the type of coverage you need, you need to figure out how much life insurance you need to protect the financial future of your family.

Then you can move on to finding the right type of coverage for you – term or permanent. The biggest advantage of term life insurance is that initially; it costs a lot less than permanent insurance. This makes it a lot more affordable to young families on a budget.

Permanent life insurance, on the other hand, provides both lifelong coverage along with a cash accumulation feature. This cash accumulation feature can be a valuable source of money for you in the future.

The best solution is often to go for a combination of term and permanent life insurance policy. Our experience life insurance advisor can provide you with the possible solution based on your current financial condition and needs.

  1. What life insurance products are good for working mothers? And what are the ones best suited for stay-at-home mothers?

Both working moms and stay-at-home moms need financial security because whatever they do for their families is valuable.

A stay-at-home mother may not be compensated for her job, but then, if the worst happens to her, it will be expensive to replace all those things she normally does – from home care to child care to groceries, etc.

A working mom, on the other hand, contributes an income, which may be critical to the finances of the family. This means she needs to think about finding a replacement for that income when determining how life insurance coverage she might need.

  1. If my work life insurance enough?

To be honest, group insurance is an excellent benefit. But it is often limited.

Firstly, the coverage amount is not sufficient, say, only $50,000. The amount may sound like a lot but how long will that money last? And what would happen to your family if that amount is gone?

Secondly, the coverage goes away when you leave your job. If you do not own an individual policy at that point, you will put your family at risk. Just think of the number of times people change their jobs, and you will realize you may need separate individual life insurance in Brampton, Mississauga or Toronto.

  1. Since I am pregnant, are there any restrictions?

If you are at an early stage of pregnancy with no medical complications, you should be able to get yourself a life insurance plan.

If you are at a late stage with further medical complications, life insurance may be difficult to obtain. The company may choose to wait until your child is born. Therefore, it is always advisable to get a coverage as soon as you can preferably before pregnancy planning.

  1. How much can I expect to pay as life insurance premium?

Your premium typically depends a lot on your age and health. The younger you are, the cheaper it is.

For example, you can take this as a reference:

A healthy 30-year old non-smoker lady can get herself a $250,000 coverage for less than $15 a month. That’s less than a latte!

And then, if you want to include your spouse, both of you may be able to get a combined $500,000 coverage for less than $30 a month.

Lastly, we would like to say, it always makes a lot of sense to talk to a life insurance advisor to know what plan suits you the best. The amount of coverage can also be rightly fixed based on your budget, liabilities and financial goals. The consultation also comes for free with zero obligations – so do not wait! The best time to get a life insurance policy is TODAY!