Parents’ Guide To Life Insurance


You’ve probably done your research and know what you need to do to add your new bundle of joy to your current health insurance plan, but have you looked into reviewing your life insurance needs? Use this guide to help you weigh your options, and learn more about how the right life insurance is an excellent way to provide financial protection for your growing family.

Discover your options. First, let’s talk about the two basic types of life insurance — term life insurance and whole life insurance.

Term life insurance offers protection for a set period of time — for instance, 20 years. During the set time frame of your policy, premiums and coverage amounts do not change. Once the initial policy term ends, the policy will renew annually with new rates, unless you decide to cancel the policy.

Whole life insurance goes the extra mile and provides coverage for your whole life. Not only that, it usually includes advantages like the accumulation of cash value and premiums that don’t increase regardless of age or health changes.

While term life insurance is a popular choice for young families with larger coverage needs, the decision is ultimately yours to make. And as always, your Campbell Insurance agent is ready to help walk you through that big decision.

Understand Your Priorities. Next, determining the right amount of coverage is key. Instead of thinking in terms of dollar amounts, think about some of the costs your family will have in the future, like child care, education and a mortgage. Also, try to think about how much income you’re expected to earn over the course of your life. We’ve created a handy calculator to help you determine your life insurance needs.

Buy Early. It’s simple — the earlier you get a life insurance policy, the less expensive it should be. That’s because the cost of life insurance is partly based on your age.

Protect Both Parents. In this day and age, it’s normal for both parents to work and contribute to household costs. But even if only one parent works, it’s still advisable for both parents to be covered. After all, the contribution the stay-at-home parent makes would also need to be replaced, should the unexpected happen.

Protect Baby. Many parents opt to purchase a whole life insurance policy on new babies and young children, since the cost is so minimal due to their age. Plus, it’s peace of mind that lasts a lifetime, regardless of age or changes in health status.

We’ll admit, life insurance can be intimidating, but that’s why we have life insurance experts! One of our agents would be happy to help you navigate this important decision — and they’re just a call away.

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