Maybe you've never considered buying life insurance up to this point. You're young, healthy, and until recently you had no dependents. However, with the recent birth of your first child, your circumstances have altered dramatically. Now that coverage is crucial because, even though unfortunate circumstances are unlikely, you cannot risk your child’s financial future. Below, Allegheny Insurance Services in Elkins, WV, explains why life insurance is essential for new parents.

Why Life Insurance Is Crucial for New Parents

To Replace Your Income

Most young families get by on one income while the other parent stays home to care for the child. This makes that single income indispensable, but even two-income families rarely have a great deal of disposable income because of high childcare costs. If your family relies on your income, your unexpected passing could be financially devastating, and life insurance could help support them.

To Pay Off Debts

Contrary to popular belief, most debts do not simply dissolve with the death of the borrower. Instead, they transfer to the estate of the decedent and thus become, in part, the responsibility of the survivors. Life insurance can help the surviving parent pay off any debts you have accrued, including credit card charges, hospital bills, and student loan debt. This relieves their financial burden and provides some time to adjust to changed circumstances.

To Pay for Education

If you have plans to send your child to private school or, eventually, to college, the costs can be exorbitant. The loss of a parent can make it difficult to save enough money to afford it. However, you can tailor a life insurance policy to pay for some or all of these educational expenses if one or both parents should pass away unexpectedly.

As you see, there are several important reasons to protect your child's financial future with life insurance. To discuss your coverage options, contact Allegheny Insurance Services in Elkins, WV. They've been serving residents and businesses throughout Randolph County for more than 100 years, and they also specialize in business, auto, and health insurance. Visit their website to learn more about their insurance products or call (304) 636-1680 to speak with a friendly, experienced agent.