If you are expecting a child and considering life insurance, you have made a smart move. There are few times in life, which are more nerve-wracking than the period before your child is born. It is easy to push aside subtle things like insurance. However, when it comes to protecting your growing family, an insurance coverage is essential. If you are an expecting mother, a good insurance coverage is more important than ever. Life insurance should be on the top of the list of priorities when your family is about to grow. Life insurance will pay a lump sum or a regular income to your family in your absence.
Once a baby is born, the complexity of life only increases. Life is never the same for the couple. Financially too, life will not be the same. Hence it is important to deal with medium and long-term financial planning months before the delivery. If you are looking for coverage for the first time, several questions may be running through your mind. In this primer get your questions about life insurance answered.
Deciding on the Coverage
The first question about life insurance which expecting moms want answer to is which is better, term or permanent coverage? Most expecting mothers are in a fix whether to choose term or permanent insurance quotes. The advantage of term insurance is that it will cost less than the permanent initially. This is affordable for expecting mothers who do not have a lot of disposable income but need large coverage. Permanent insurance, on the other hand, offers lifelong coverage, which can be a valuable source of money that you can tap in the future. Ideally, the best solution lies in purchasing a combination of coverage for both. But before deciding on the coverage, you should find out the amount of death benefit required to protect your family. This easy calculation can be done online.
Working Mom versus Stay-at-Home Mom
As an expecting mother it is natural to look for ways in which you can protect your child’s financial needs in the event of your untimely death. The next question about life insurance which needs to be answered is what type of cover you should opt for, if you are a stay at home mom compared to a working mom. If you are aprimary wage-earner, a life insurance cover is extremely essential. Meeting everyday living expenses will be difficult if something untoward happens to you. On the other hand if you are a stay at home mom, your family would have to pay someone to do the household chores or pay for childcare if you are gone suddenly. A good life insurance coverage will help you to cover the costs.
You may have a group life insurance policy but it may be limited. It may not be sufficient to meet your dependent’s needs. In this case, you can supplement the group life insurance policy with an individual life insurance policy and make sure that your dependent’s needs are covered.
Wondering About the Restrictions
When you are expecting a child, you may be wondering about the restrictions. If there are no medical complications, then you will be able to get the policy easily. Later, if there are medical issues, it may be difficult to obtain life insurance coverage. Hence, it is advisable to get coverage as soon as possible, when you plan to have children.
Most term life insurance policies require a medical test. Health concerns, such as increased weight or high cholesterol can affect the rates. At times, some insurers waive charges associated with issues which are contributed by pregnancy.
Is Coverage Offered by the Company Sufficient?
Working moms who are expecting children may wonder whether the life insurance offered by their company is adequate. This is a common question about life insurance which needs to be answered. A group insurance may be highly beneficial but it comes with certain limitations. The coverage may be more than the salary but the question that arises is that how long will the money last? The next question that crops up is that what would happen to the family once the finances are exhausted? Additionally, in case you resign from the job, you will lose the coverage. You will be leaving your family at risk if you do not have an individual policy.
Questions which Revolve Around the Payments
Most expecting mothers have questions about payment. They have thoughts that revolve around annual, monthly, or daily payments. However, the payments depend on the age and health of an individual. Buying an insurance cover can be expensive if you are in a poor state of health or have a pre-existing medical condition. At times, a dangerous job or hobby too can have an impact on the insurance cover.
By now your questions about life insurance must have been answered. Now let’s take a look at the steps you must adopt when opting for life insurance coverage: