Life insurance can be a very good thing to have, but it is one that many people put off buying when they are young. For younger adults, it can seem like spending the extra each month is not really worth it – if you don’t have anyone dependent on your income and don’t have any major debts that would be passed on if the worst happened to you, then realistically you can get away without it.
However, as people begin to take on commitments and form families, life insurance can become a far more important asset. Once you’ve got a mortgage, or are part of a married or cohabiting couple who depend on having a certain amount of income available every month, your death could leave somebody else in massive debt, or without the money they need to live on. Even in this situation, though, many people put off purchasing life insurance. But what about when children come into the equation?
Investing in Life Insurance When a Baby Is on the Way
For many young couples, the first time life insurance becomes a priority is when they are expecting or planning for their first child. For expectant single mothers, it can be an even bigger matter of importance. Life insurance can make sure that your children are financially looked after even if you die and are unable to provide for them as usual. It can pay for their college education, and make sure they have everything they need. For many people, the thought of having a child who is completely dependent on them is what leads them to finally take the plunge and buy a life insurance policy.
Can Pregnant Women Get Insured?
One thing some women who are expecting a baby worry about when it comes to life insurance is whether or not it is possible to get insured when pregnant, and whether premiums will be higher due to a perceived health risk due to pregnancy and childbirth. Happily, insurers do not regard pregnancy as a medical condition that would affect how much you have to pay for insurance. If you are pregnant, your premiums would be calculated based on your health and lifestyle when you are not pregnant, so there is no reason to put off buying insurance until after the baby is born.
Insuring Both Parents
Some people think it is only important to insure the parent with the highest income, however most money experts like financial advice website Money Looms recommend insuring both parents, even if one doesn’t have an income. This is because should the main breadwinner be left behind with the children, they would need to be able to afford to reduce their working or pay for childcare.
If you are planning your first child or pregnant, then life insurance is something you should get arranged as soon as possible. It can be a fairly small expense and one that will give you a lot of peace of mind.
Thias @It Pays Dividends says
This is an area that we are currently under-insured now that we have a daughter but quickly looking at getting more. Don’t overlook life insurance when you have a family and obligations that you don’t want to burden with your loved ones if you happen to pass away. We definitely missed the boat but need to get it corrected soon.