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What new parents should know about life insurance.

If you have just had your first child or are about to, then you need to secure life insurance to protect the future of your baby.  If you do not know where to begin when it comes to securing life insurance, then here are some of the important things to consider before shopping for a policy.

  • Securing Life Insurance is Easier Than Ever

Many new parents put off getting life insurance because it feels too overwhelming and stressful.  However, the process of securing coverage is actually pretty straightforward.  This is especially true if you are applying as a young, healthy individual.  When you secure life insurance early, you have an easier time passing medical exams and can also lock in cheaper rates.  Now that most insurance companies allow you to request a quote online, there’s no reason to put off this coverage.

  • Stay-at-Home Parents Need Life Insurance Too

Many people assume that stay-at-home parents do not need life insurance because they don’t earn a salary.  However, this is not the case.  While stay-at-home parents do not earn money for the work that they do, their labor is still valuable.  Because they remain at home to watch the children, clean, cook, and run errands, the other parent is free to go out and earn a living.  If the stay-at-home parent were to die, then their partner might have to pay someone to handle their responsibilities.  When the stay at home parent has life insurance, their death benefit can cover the cost of childcare and household help so the remaining parent can continue to work.

  • Employer-Offered Life Insurance May Not Be Enough

Many employers offer life insurance as an employee benefit.  As a new parent, you should take advantage of this perk.  However, the coverage that your employer offers is limited.  Typically, an employer-offered life insurance policy only offers coverage equivalent to one to two times your annual salary.  As this will not be enough to support your family for an extended period of time, it’s best to supplement employer-offered life insurance with a personal policy.

These are some of the things that new parents should consider when securing life insurance.  Do you need help with your life insurance needs?  If so, then contact the experts The Schwab Agency in Colleyville, Texas, for assistance today.

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