Having a new baby is a joyous event for the new parents and loved ones around them. The new parents get busy with taking care of the baby’s needs and hardly have time for themselves or anything else. Getting life insurance might be the furthest thing on their minds, says Randon Morris. It is understandable because they need to juggle work, family, and the newborn and try to balance them. Still, paying for life insurance is important and shouldn’t be forgotten. As new parents, the insurance benefits can help secure your children’s future if you are not there to care for them. Full-time parents need life insurance so that they won’t overburden the surviving parent with financial debts.
Meaning of Life Insurance
Life insurance is described as a vital financial sanctuary. It generates an income for your inheritors upon your demise. This earning is tax-free and the sum given to your beneficiaries depends on the amount you bought. You choose the insurance package that suits you, make the equivalent payment and put down the name of your appointed successors. Beneficiaries are those you choose who receive your money or benefits and use it as stipulated or as they deem fit. They can use it for their medical expenses, mortgage bills, school fees or any other living expenses.
Randon Morris, a business consultant who is known for his business acumen said, “When acquiring a life insurance scheme, go to a reputable insurance firm and consult with them before deciding on what to get. You will receive guidance and get to understand what you are acquiring, the terms and conditions. This will save you from buying complex insurance that will give your beneficiaries problems when they need the benefits.”
Life Insurance Acquisition Tips
1. Select the Right Package
Randon Morris also stated that there are two categories of life insurance, namely period (term) insurance and continual (permanent) life insurance. Term insurance is an insurance package whose coverage is set over some time (like 5, 10 or 20 years. This means that the benefits or money will not be given to the beneficiaries after the set period has expired. The advantage is that it is affordable, especially for parents with children. Permanent life insurance offers lifelong coverage. “Purchasing a permanent life insurance policy is probably the best choice for any parents” Randon Morris admonished. After purchasing the package, you can add term insurance as an added benefit for your beneficiaries.
2. Think far Ahead
It might be too soon to think about your new baby’s future educational needs but it is better to be safe than sorry. School fees today we’re not the same as the fees paid two years ago. Things change every day, prices fluctuate and you cannot predict the future. As new parents, you want your baby to have the best care, education, a good job, healthy and happy life and so on. Yet, the cost of getting these things is not cheap. Put the cost of your baby’s education into consideration when you purchase a policy. It will prevent you or your baby from being neck-deep with student loans.
3. Designate an Adult on Behalf of your New Baby as a Beneficiary
Choosing minor kids as your beneficiaries can be a drawback and affect your kids in the end, says Randon Morris, business consultant. This is because there may be regulations and restrictions on how much a minor can get from insurance benefits. If such happens, they would need to postpone receiving the proceeds until a guardian is court-appointed by the court as a beneficiary. The long wait might be a problem especially if the money is desired in an emergency. Designate an adult you trust or a trust in place for the children.
Do not hesitate, talk to an insurance agent today and secure the best future for your new baby.