As a new parent, you are getting used to some new responsibilities and probably a much more erratic sleep schedule! Between changing diapers and trying to get your newborn to go to sleep, you barely have a second to yourself. Well, rest assured, life will never be the same again. For this reason, it is easy to see how you could lose track of your Term Life Insurance needs.
Like some new parents, you may already have Term Life Insurance, most likely to protect your significant other in case something happens to you. However, many couples without children do not have life insurance in place and this is often the case as they bring a newborn into the world. Regardless of your Term Life Insurance status before, having a child is an excellent reason to look at your policy again. Before you purchase Term Life Insurance, there are a few thing you should take into consideration beforehand. While todays modern technology may allow you to find and purchase term life insurance online, make sure you check the facts and consult with experts before you click buy.
First thing you need to decide when purchasing term life insurance is how much coverage you will need. This is determined by several things. First step is looking at your income needs. The primary purpose of life insurance is to replace your income for your family should you pass on. However, one thing to consider is that you may live for many years to come, and in that time your income may increase. Making sure that your family is financially covered in the event that you have seen your salary increase (compared to where you started) is an important consideration when making a decision on the size of the policy. Another factor to keep in mind when it comes to choosing a coverage amount is any major financial investments you have or will be making. Additionally, if your spouse does not work, or decides to stop working when the newborn arrives, would you be able to afford the cost of child care if they pass? Another example might be covering the cost of a college fund for your child.
The next thing you need to consider is the length of term. Since you are most likely a young couple, a longer term policy could be a good option. By choosing a lengthy term such as 30 years, you ensure that your family is covered even after your child has grown and left the house. A longer term will also ensure that, should you pass before your mortgage is paid off, or your childs college tuition is paid, those financial burdens will be covered.
Finally, you should compare Term Life Insurance companies. Each company is different, and will offer different policies and different rates. Knowing what your options are when it comes to your policy details will help you find the best policy at the best rate for you. Using an independent term life insurance agency, like SelectQuote, makes the process very easy to compare companies and policies, ensuring you get the policy that fits your needs.