We Know This is Obvious. Read it Anyway.
Life insurance is often the last thing new parents want to think about.
Yes, today we're talking about life insurance needs for new parents, and yes, we know this seems pretty obvious. That's because it is - if you are a parent, you need to be insured.
However, despite the fact that most parents are aware of the fact that they need life insurance, 37 percent of parents with kids under 18 don't have any, and about half of the ones who do are under-insured. So keep reading, and then pass this along to some of your friends and family who might be lacking when it comes to protecting their families.
It's common knowledge these days that raising a child costs about $235,000 - and that doesn't include college expenses. Should tragedy strike, insurance money can pay for everything from clothes to college, and help keep a terrible situation from being worse than it has to be. Whether or not both spouses are working, both parents should be adequately insured. Daycare costs, travel costs, babysitters and time off work for doctors appointments all add up when there's only one parent covering it all, even if there wasn't a significant change in income.
While we don't see many client families claiming they don't need life insurance at this life stage, we do see many growing families that are hesitant to talk about it for a few reasons.
First, it's morbid and depressing, and we understand that. No one wants to think about tragedy when they're cooing over a beautiful new baby or watching their elementary schooler laughing and enjoying a new activity. At this point, I always remind my clients that while yes, the primary reason for life insurance is to provide money in the event of an untimely death, it can also provide benefits while everyone is still here - including all the way into retirement. For more on some unusual ways life insurance can work for you, click here. For more on how life insurance can be part of your retirement and estate planning, click here. See? It doesn't always have to be morbid!
The second reason we hear client families resist life insurance is cost. Many new parents tell us they're a little strapped for cash with the expenses of child-rearing or a new arrival in the family, and they want to wait a year or so before applying for life insurance. But once we walk these families through the projected costs and coverage amounts, most are surprised at just how affordable a life insurance policy can be. While rates will vary depending on your health, lifestyle and other factors, our team can help you find the policy that best fits your needs and budget. And, should something unthinkable happen in the next year, do you want your legacy to be that you postponed protecting your family in order to save a few dollars today?
Lastly, many young parents tell us they simply don't have time. Being parents is a full-time job, so when am I going to have time to fill out an application and go through a physical exam, they tell us. Just as with the costs, applying for a new policy is usually not as long and involved a process as many people think - and we're here to help. Our team is experienced in guiding our clients through this process, and we will streamline it to fit your busy schedule as best we can.
Please, if you don't have life insurance and you do have children, call us right now at 859.219.1006. First meetings are always complimentary, and we'll go over other aspects of your financial life as well. And even if you are insured, we'll be happy to review your policy with you to make sure it still fits your growing family's needs. We're always here to provide a second opinion.