4 Life Insurance Tips for Parents to Make Sure Your Family is Covered

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As a parent, make sure that you and your loved ones are covered with insurance and pay the best price.

Whether you are a new or seasoned parent, you want to make sure you keep your children safe. You want to ensure that they are safe from germs, strangers, and especially during tragic events. Buying life insurance for yourself will give you the peace of mind that your children and loved ones will be financially cared for after you pass away. But, how will you know that they have enough money or that you are purchasing the most suitable policy? Here are four life insurance tips for parents who are searching for the perfect policy. 

4 Life Insurance Tips for Parents Searching for the Most Suitable Policy

  • Speak With an Insurance Agent

Image courtesy of Pexels.

One of the most critical life insurance tips for parents is to speak to a life insurance agent. Finding a life insurance agent will make this process a lot less stressful for you, which can be one of the best gifts as a parent. All agents are licensed and can be with one specific carrier or work independently and are appointed with multiple different carriers. Their job is to study the products, what their prices are, and what kind of benefits each policy has. If you were to research the policies independently, you would find it impossible to discover all of the information and understand it all. The insurance agent will investigate for you and see your family the most suitable and affordable policy. Below are the main tasks of an agent:

  • Get your details (name, address, health information, etc.)
  • Determine how much you can afford for the policy
  • Research and put together options for you
  • Follow up with you to ensure the policy is in place
  • Decide on the Right Policy

There are two major categories for life insurance policies you will have to decide between for your coverage. 

Term life insurance: A term life insurance policy has no cash value accumulation but is perfect for those on a limited budget. If you purchase this policy and decide to turn it into a long-term policy, you can do so.

Whole life insurance: Whole life insurance policies are used for long-term death benefit protection and have a stable cash value accumulation, unlike the term life insurance policy. If you wanted to cash out before you pass away, there is a potential to receive dividends. 

  • Determine How Long You Need the Policy

Not every family will need to purchase a life insurance policy for the same amount of money and length of time. To find out how much money you should invest into your policy coverage, some experts believe in the income replacement method of calculating coverage. The income replacement method is an approach that will determine how much income will be lost after the death of the family breadwinner. To decide this for yourself, multiply your income by 5 to 10 to get an estimate of your coverage goal. There are various online calculators you can use or speak with your insurance agent. 

Other experts also recommend following the DIME method:

Debt- mortgage, credit card debt, car payments, etc. 

Income replacement- Do you want your coverage to replace your income for the rest of your beneficiary’s life?

Mortality- burial wishes and costs

Education- Do you want to pay for the education expenses for your dependents? 

  • Name a Trusted Beneficiary

The beneficiary will be the person who receives the proceeds of your life insurance policy after you pass away. This person will be responsible for the money, so avoid naming a minor child as the beneficiary because children may not receive the funds. Also, make sure you do not sign it off to your estate because it could lead to tax implications. Again, speaking with your insurance agent will allow you to make an educated decision. 

There are an endless amount of life insurance tips for parents, and it can become extremely overwhelming. Fabric can be your one-stop-shop for all of your family’s finances and can allow you to search for the most affordable life insurance policy. Their tools will give you tools to plan your family’s financial future while also simplifying them. Take as little as ten minutes to start the process of finding the best life insurance policy for you and your family!

About Author

LaDonna Dennis

LaDonna Dennis is the founder and creator of Mom Blog Society. She wears many hats. She is a Homemaker*Blogger*Crafter*Reader*Pinner*Friend*Animal Lover* Former writer of Frost Illustrated and, Cancer...SURVIVOR! LaDonna is happily married to the love of her life, the mother of 3 grown children and "Grams" to 3 grandchildren. She adores animals and has four furbabies: Makia ( a German Shepherd, whose mission in life is to be her attached to her hip) and Hachie, (an OCD Alaskan Malamute, and Akia (An Alaskan Malamute) who is just sweet as can be. And Sassy, a four-month-old German Shepherd who has quickly stolen her heart and become the most precious fur baby of all times. Aside from the humans in her life, LaDonna's fur babies are her world.

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Rida Ali
Rida Ali
1 month ago

Thanks for sharing excellent information. Your site is so cool. I’m impressed by the details HR consulting firms in Pakistan that you’ve on this web site. It reveals how nicely you understand this subject.

Tara Pittman
1 month ago

My husband gets life insurance from his work. I am thinking it might be time to up the amount.

Brianne
1 month ago

This is so important. Life insurance is a huge part of ensuring that your family stays safe. You have to have it.

Kathy
Kathy
1 month ago

These are all wonderful tips. I think this is a very important topic too. Life insurance is certainly something to look in to.

Celebrate Woman
1 month ago

Life insurance policies are so many around. But comparing them does help.

Heather
1 month ago

I appreciate you posting this! We have been looking for the company that is best for our family.