Revisiting Life Insurance as a New Parent

As a new parent, you have many concerns about your health and that of your new baby. As responsible adults, it’s important to think about life insurance as part of your overall financial plan, especially if you have young children who rely on you financially in the event of an untimely death.

Here are some key points to help you understand why you should revisit your existing life insurance policy as soon as possible after becoming a new parent.

Why does it matter?

Many new parents are shocked to learn that they are not covered enough by their life insurance policy until after their baby is born. Therefore, it’s important for parents to understand how much coverage they really have before adding a new little bundle of joy to their family.

Children are a significant source of financial support for parents later in life, so it can make sense for some people to bump up their life insurance policy—or add one if they don’t already have one—once a baby arrives.

If you have an existing life insurance policy, review it to see if you are covered for your new baby or children already. If not, now is a good time to revise the plan — or bump up your coverage amount. You may also want to think about changing your policy type; some people opt for term life insurance since it provides more flexibility than whole life insurance.

Talk to your financial advisor for more information.

Risks

If you are a new parent, chances are that your life insurance policy has gotten little attention in recent years. But in reality, your life insurance needs have changed, and there’s no better time to review your coverage than before your baby arrives. Here are a few risks of not doing so:

• Having enough life insurance coverage in place will help you cope with unexpected financial burdens—such as leaving behind student loans, childcare costs and medical bills—that come with raising a child. If something happens to you, your spouse will be able to provide for your baby.
• And if he or she is not already working, having your income covered by insurance means that your spouse could stay home with your baby, which means spending more time caring for them and building stronger family bonds.
• Finally, if you have other dependents that would require financial support should anything happen to you – like elderly parents who depend on you for their care – life insurance can also help take care of those people by making sure they’re financially secure after something happens to you.

Talk to our financial advisors to review your life insurance policy

Firstly, we would like to congratulate you on becoming a parent! We know how beautiful and as stressful this time can be.

Our advisors can help to take the stress out of your situation by helping you review your existing life insurance policy. And if you don’t have a policy yet, it is high time you get one – possibly today! Get in touch with our advisors for a free life insurance quote.

Recommended Read: How to purchase a life insurance policy for the first time