Starting a family is one of life’s most rewarding experiences, but it’s also an incredible responsibility. Life insurance is a vital tool for your young family, allowing you to continue providing for the ones you love if something were to happen to you before the children are grown. Below are a few tips for ensuring your new clan has enough coverage to pursue their dreams after you’re gone.
3 Life Insurance Tips for New Families
1. Don’t Put Off Purchasing Coverage
Life insurance is generally age-banded, which means coverage grows more expensive as you grow older. Once you purchase a policy, your rates are locked in and won’t go up even if you’re diagnosed with a serious medical condition. Buying a great policy when you’re young can save hundreds of dollars every year, adding up to thousands over the life of the policy.
2. Understand Your Options
Insurers offer a confusing array of policy types and options, but they can all be categorized as either term or whole life policies. Term policies are generally less expensive, but they only pay benefits if you pass away within a specific time period. Whole life policies are permanent and include a savings component, but they tend to have higher premiums. Either type may be ideal for you, based on your unique situation.
3. Consider the Value of the Policy Carefully
How much life insurance you need depends on a variety of factors, including your income, debts, and long-term goals. Perhaps you’d like to leave behind enough for your spouse to pay off the mortgage and credit cards or set up a college fund for your children. Many parents choose to purchase enough coverage to completely replace their income until the children are grown and building lives of their own.
Choosing a life insurance policy is a major decision, especially when you have young children, which is why the Farm Bureau of Mebane-Caudill Agency is committed to providing everyone with individualized attention and policies tailored to your needs. Agents Jonathan Caudill, Alan Wilson, Jay Lee, and Eric Michaels are known throughout North Carolina’s Alamance County for exceptional service and have won the 2018 Readers Choice® Award for Best Insurance Company in Mebane by the Mebane Enterprise. Visit their website or call (919) 563-3276 to get a quote today.