Having a baby and starting a family is both exciting and stressful. To better protect the people you love most, you’ll need to start thinking about the future, including what would happen to your loved ones if you pass away. While your existing life insurance may have been sufficient to help your spouse cover expenses and pay off outstanding debts, your coverage needs will likely change once you have a child. Here are a few ways you’ll need to alter a plan after expanding your family.
Increase Coverage Limits
The cost of raising a child averages over $200,000. This includes day care, clothing, education, doctors’ visits, and daily expenses associated with helping them grow to adulthood. While you and your spouse may be able to cover all this comfortably with both incomes, the burden can become too much to bear if you pass away. If the existing policy was enough to protect you and your spouse, consider increasing the coverage limits to provide for a new child as well.
Ensure Both Parents Are Covered
For many new parents, it’s not uncommon for only one person to have an active life insurance policy. However, once you have a child, it’s important that both parents are protected. If either one of you were to pass away unexpectedly, you’d have the money you need to look after a child, pay for additional care, and cover the shortfalls left by losing one stream of income. Remember, the younger you are when you purchase a policy, the more affordable the coverage is likely to be—even considering the added costs of raising a child.
Consider Leaving a Legacy
Even if you have an existing insurance policy, it may not be enough to leave a legacy for your children. For instance, there may not be enough saved up to give an inheritance or pay for their college tuition if you pass away. Tailoring life insurance is a smart way to provide for their futures without forcing you to assume the financial risk of high-return investments.
At Tim Bryan Insurance in Andalusia, AL, their dedicated staff helps new parents secure the life insurance coverage they need to protect their family. As a trusted State Farm® agent, Tim Bryan understands that all families are unique. He’ll get to know you and your situation to find the right policy, whether you need additional life coverage or want to upgrade the auto insurance to better protect your child. Learn more about him online and call (334) 222-1460 for a free insurance quote today.