Do I really need life insurance? Every parent should consider having life insurance. While you may have an existing life insurance policy through your employer, it may not be enough once you become a new parent. Life insurance gives parents peace of mind in knowing that their children will be provided for no matter what. As you expand your household, you may take on large debts, such as a mortgage or a new car. New parents should think of life insurance as far more than an optional financial product. Life insurance is an essential part of planning for the future. It’s there to help protect your family in the long run, no matter what happens tomorrow or down the road.
Common questions. Do stay-at-home parents need life insurance?
If you’re a stay-at-home parent, you should also consider taking on a life insurance policy. Why? Think of all the value you provide to your family as a stay-at-home parent. Replacing childcare alone would cost upwards of $16,000 per year. Add on a housekeeper, and it’s easy to see how a surviving parent would be left seriously struggling. In fact, if a stay-at-home parent made an annual salary, it would amount to about $162,000, according to Salary.com. All of those costs add up and can be especially daunting during a stressful time when the family is trying to get back on its feet. So don’t underestimate your value as a stay-at-home parent. Having a life insurance policy is another way to bridge the financial gap when your family needs it. How do beneficiaries work? A beneficiary is the person, persons, or designated trust that receives your life insurance policy proceeds if you die while your policy is in force. As the policy owner, you designate your primary beneficiary (or beneficiaries) when you fill out your application. For many parents, the primary beneficiary is usually your spouse, your life partner, or your children. Once you choose a life insurance policy that best suits your family’s needs, you’ll have peace of mind knowing that you’ve taken a tremendous step to protect your family’s financial future. Life insurance will be there to help replace income, pay off debt, cover education costs, and alleviate living expenses that may pop up for your family for years to come. What type of life insurance is best for new parents? Every family is different. That matters when it comes to choosing the best life insurance policy for your family’s needs. There are two basic types of life insurance: whole and term. Whole life insurance is permanent and stays in effect, as long as the premium is paid, typically for the entire life of the insured. Term life insurance provides life insurance coverage for a specific period of time. At Ethos, we offer term lengths between 10 and 30 years and coverage options from $20,000 to $1.5 million. With the term life insurance available with Ethos, you will pay a fixed premium for the duration of the policy, meaning your rate will never increase during your initial term. How do you choose the best plan for your family’s needs? First, consider your current financial situation. For example, if you’re a brand-new parent you might want a 30-year term life policy that provides coverage until your child reaches adulthood. If your kids are in college, you might only need a 10-year term to cover educational expenses and any other unexpected plans in case you pass before they finish school. As a new parent, a term life insurance policy may be the best option. Term life insurance can be up to 20 times more affordable than a whole life policy. Plus, term life insurance provides coverage during the years you need it most and doesn’t cost you money when you no longer need it. Of
Made with FlippingBook - professional solution for displaying marketing and sales documents online