Becoming a parent is an exciting time in life. A first time parent will face a wide range of new experiences. Although parents are excited about the new life coming into the world, it is also vital to remember financial planning basics and make updates to life insurance coverage.
Parental Responsibilities
Before becoming a parent, a couple or individual might not worry about the need for life insurance. Since a couple is not yet responsible for a child, it might not be necessary at that time of life. Taking on the responsibility of a child changes coverage needs because a baby is not able to take care of financial needs for several years.
Necessary Coverage
The amount of coverage required will depend on several factors. Parents need to consider current debts, childcare requirements and the expenses of a child until adulthood. The exact amount requires some careful calculations and planning based on the current situation.
Parenthood is an exciting time, but preparing for that new life is as important as the tasks of caring for a child. Before bringing the baby home, contact Pierce Insurance to learn more about coverage options.