For couples who’ve decided to have children, they need to protect them from the unexpected. Life insurance provides reassurance and resources to parents with children, who depend on them for financial and emotional support. Here’s what you should know about securing customized coverage for your new family.

5 Life Insurance Tips for New Families

1. Get Two Policies

Whether you and your spouse work outside the home, or if one of you is a stay-at-home parent, both should have insurance policies. Should something happen to either parent, life insurance provides funds for income loss, child care expenses, outstanding debts, and the cost of a funeral. 

2. Designate Beneficiaries

Spouses should name each other as beneficiaries on each policy. Some couples also choose to name their child or children as secondary beneficiaries. If they’re still minors, consult with an insurance agent to determine if laws in your state permit designating them as such. As secondary beneficiaries, they would receive the proceeds from a policy if your primary beneficiary—your spouse—dies before or with you.

3. Determine Coverage Type

The two most common forms of life insurance are term and whole life. A term life insurance plan is typically available for designated time frames ranging from 10 to 30 years. The policyholder pays the premiums for the duration of the term. Once the term is up, they can renew the policy or set a different term. Term policies pay benefits at death but do not accumulate cash. When the term is over, coverage ends.

Whole life insurance lasts as long as the policyholder is alive and is current on premiums. Over time, these policies build cash value and withdrawals—loans—are permitted. Death benefits are also paid. Work with an agent to determine which coverage type is best for your new family based on your respective incomes and assets. 

4. Lock In Lower Rates

Insurance providers typically base premiums on age. One of the benefits of getting coverage sooner than later is locking in lower rates for the long term. Riskier groups of people—those who are old or sick, for example—pay higher rates. 

5. Weigh College Costs

It’s never too early to start thinking about college expenses. You can tailor a life insurance policy to provide funds to pay for tuition, room and board, and books.

Children need guidance and financial support. We at Farmers Insurance Group want to be your trusted resource for your life insurance needs and long-term financial goals. Based in Mountain Grove, MO, our mission is to provide clear and concise options. As your family’s needs change, we’re here to help you. To get started with a free, no-obligation insurance quote, call (417) 926-7900, or visit our Facebook page to learn more about our agency.