Few milestones are as life changing as having a baby. Now that you’re a parent, there’s nothing more important than making sure your family is protected from whatever the future may hold. This is why it’s essential to consider buying life insurance. With a policy in place, your loved ones will have a financial safety net in the event of your untimely death. Here are a few tips on securing affordable and reliable coverage.

A New Parent’s Guide to Life Insurance

1. Buy a Policy Early

Life insurance premiums are primarily based on the policyholder’s age and health. As such, the younger and healthier you are when you buy coverage, the better you can expect your rate to be. Costs will only continue to increase as you age and become a higher risk for developing medical conditions. To lock in the lowest price possible, you’ll need to get your policy sooner rather than later.

2. Learn Your Options 

There are two main types of policies to choose from when buying life insurance—term and whole life. With a term policy, you’ll receive coverage for a specified length of time, and a death benefit will only be paid out should you pass away while the policy is still active. Whole life policies provide coverage for the remainder of your lifespan as long as the premiums are paid. These policies also have a cash value component that acts like a savings account you can borrow against or withdraw from while you’re still alive. You’ll want to explore both options to see which makes the most sense for your circumstances.

3. Purchase Coverage for Both Parents

Whether both parents go to work or one stays home to care for the baby, it’s a good idea for each of you to have life insurance coverage. Any change in income can cause a significant financial burden, so you’ll want to ensure you have replacement funds. Also, even though a stay-at-home parent doesn’t generate income, they help save a great deal on childcare costs.

4. Choose Your Beneficiary Carefully

One of the most important aspects of a life insurance policy is the beneficiary. This is who will receive the death benefit if you pass away. While you may be purchasing coverage with your child in mind, it’s better if you don’t name them the beneficiary. Minors are usually restricted from receiving life insurance payouts, so you should designate another adult to distribute it on their behalf instead.

If you want peace of mind knowing your family will be taken care of after you’re gone, let the professionals at Farm Bureau Financial Services-Joe Rickley Agency help you find a suitable life insurance policy. Backed by nearly a decade of industry experience, Joe and his staff have provided countless residents in the Papillion, NE, community with quality coverage at competitive rates. They’ll take the time to evaluate your unique needs and recommend the best solution for your situation. Call (402) 932-0322 to request a quote, or visit them online to learn more about their services.