« »

Monday, December 2, 2013

You or your partner is pregnant, should you start thinking about life insurance?

New family members require life insurance adjustments
Pregnancy is a major life change and responsibility
Pregnancy is a time for preparation. You prepare the baby’s bedroom, you buy the baby’s crib, stroller, car seat and anything else a baby might need, and perhaps most importantly, you prepare yourself for the birth of a little person who will be completely reliant on you.

While this can be an emotional preparation, it is also a financial preparation too. You will need to make sure you can take care of this person, and provide for them financially. While it’s not something that everyone like to think about, this includes life insurance (click here to find out more).

Benefits of life insurance as a parent

There are numerous reasons to invest in life insurance as a parent. If you are pregnant, or your partner is pregnant, then this is a good time to mull over these reasons, and consider your life insurance options.

Take care of your partner

If something were to happen to you, could your partner cope financially? Paying the mortgage, the household expenses, the school fees, the grocery bills and everything else? Life insurance could help to cover all these expenses in your absence.

Take care of your children

If you have dependents, it’s important to consider how they would cope if you were no longer around. This includes your own children, elderly family members or anyone else who relies on you financially. Again, life insurance could provide for their day-to-day finances.

 Chart of a life insurance policy
How a life insurance policy works
Life insurance companies help ease the financial stress of life changes
Provide for your children’s carers

If you or your partner were no longer around, who would take care of your kids? Perhaps it would be your parents, your partner’s parents, or another family member or friend. Could they cope financially with the responsibility of your children? Life insurance could help out.

Take care of your partner’s future

If you’re not around, your partner may struggle financially. This can include day-to-day financial struggles, and it can also include not being able to put aside enough for retirement. Life insurance can help your partner prepare for the future, even if your paycheck is not around to help out.

Take care of your children’s future 
School and college fees don’t come cheap. Most parents try to put aside money for their children’s education, but if you were not around, would that still be possible? Life insurance can help provide for your children’s education and future, no matter what they decide to do.

Cover financial responsibilities

If you have a mortgage, a business or any large debts, it’s important to think about what would happen to them if something were to happen to you. Life insurance can help to pay off loans and mortgages, and could help offer financial cover for your business.

Cover funeral expenses

Again, this is not something everyone likes to think about. However, funerals are expensive and someone has to pay for them. Investing in life insurance or funeral insurance means funeral expenses can be covered, and your loved ones won’t have to bear the financial burden.

Image licenses: Justin Arndt, CC BY-SA 3.0, David Monroy CC BY-SA 2.0