What new parents should consider when securing a life insurance policy.
Becoming a parent is stressful, overwhelming, and exciting all at the same time. However, it can also be really scary for new parents who are hit with the realization that their child is completely dependent on them. While this is a common and natural fear, there are steps that you can take to alleviate it. Securing life insurance is one way to ensure that your child is taken care of. Here’s what new parents should know about life insurance.
Buying Life Insurance
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.
Many parents are not sure how much coverage they should secure. Here are some of the factors that you should consider when selecting your coverage.
- The Cost of Raising a Child
According to the U.S. Department of Agriculture, the average cost of raising a child is around $233,610. This amount takes into account basic costs such as housing, food, education, and other child-rearing expenses. When deciding how much life insurance coverage to secure, you need to think about your partner’s ability to handle these costs without your added income.
- College Expenses
When you consider the cost of raising a child, this usually caps off at age 18. However, just because your child is an adult does not mean that they are financially independent. If your child decides to attend college, then they will likely need financial support. This is why you should factor in higher education costs when calculating your life insurance needs.
These are some of the important things that new parents should consider when securing life insurance. Do you have more questions about your life insurance coverage? If so, then contact the experts at Pierce Insurance Group. We are ready to assist you with all your coverage needs today.