As a parent, you work hard to provide for your kids. You would do anything for them. So, its critical that you protect your children’s future by maintaining a life insurance policy. It provides a way for you to secure their financial stability if something were to happen to you.
Parents from all walks of life may qualify. But, how much insurance do you need? When should you buy it? And, what type is right for you?
How Much Life Insurance Do You Need?
A good starting point is determining what your goals are. Here are some figures to calculate.
- How much are your monthly bills right now? Multiply this figure by 12 to get a yearly total.
- How long do you want insurance proceeds to provide for your kids? One year? Two or more? Multiply the previous figure by this number.
- Which extras do you want to provide for your family? Do you want to pay for their college? Do you want to be sure they have money for their first down payment on a home? Add these dollar amounts to the previous figure.
This can give you some idea of how much money you should consider for life insurance. Policies can run significantly higher, though. Paying for education, medical bills, housing, and long-term needs is important.
When Should You Purchase Life Insurance?
Parents who work and provide for their families should consider life insurance. If you were not there to pay for your family’s needs, who would do so? Accidents can occur every day and any day. As a result, it is always wise to put a life insurance policy in place as soon as a child is born. This provides the child with protection right away. It also costs less than waiting until you are older.
What Type of Life Insurance is Right for You?
Several forms of coverage exist. Two major types of life insurance are whole life and term life.
Whole life insurance will cost more initially. However, you may be able to borrow from it throughout your lifetime. It can also be a part of your estate down the road. Term life insurance is a basic form of coverage. It remains in place for a specific amount of time. This policy is best for those who want to provide for their children while they are young. It can also cover big items, such as the mortgage.
Life insurance for parents should be comprehensive. Consider the risks. Then, work with your agent at 716.631.0190 to find the right balance. Insurance like this is a must for most families.
Also Read: Why Millenials Should Buy Life Insurance