As a new parent, you’re probably used to expecting the unexpected. Parenthood is a marathon fraught with positive surprises, from first words to first steps, as well as challenges like sleepless nights and picky eaters. That’s why preparing for all contingencies is so vital for a new parent. After all, luck does favor the prepared. And though it’s a tough subject to approach, accounting for certain eventualities now could help your family later on down the road. If you have a young family, term life insurance could help you be better financially prepared in case the unexpected happens. Not sure if term life insurance is right for you as a young parent? Let’s look at some of the basics to get you started.
What is term life insurance?
Term life insurance is a life insurance policy that guarantees a pre-set amount of coverage for a set amount of time (or a “term”). Term life insurance may help alleviate costs like funeral expenses and medical bills that would otherwise may need to be paid out-of-pocket. You choose the beneficiary or beneficiaries of your policy, who will then receive the benefits of your policy within the term already established.
Is term life insurance right for new parents?
Life insurance is a way to invest in your family’s future and provide peace of mind, knowing that should anything happen to you, your family would be better prepared financially. For new parents, that kind of investment is a good way to prepare for the unexpected. However, getting the right kind of life insurance is also key. Too much life insurance may not be right for your budget right now, while too little might not provide enough relief once your family actually needs it.
Term life insurance can be a good way to find the right amount. How? For one, term life insurance generally has lower premiums (according to Consumer Reports), allowing you to put away or invest the money that you would otherwise be spending on a policy with a higher premium. For another, term life insurance can be easier to obtain than permanent [is permanent the right word?] insurance. With flexible payment options and no medical exam (just a few simple health-related questions), a term life insurance policy may be easier to work into your budget and your lifestyle.
Learn More About Term Life Insurance
Still not sure if term life insurance is right for you as a new parent? Ask Direct’s Life Coach!
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