When your first child is born, your life changes. Becoming a parent is one of the biggest and most exciting experiences you will ever go through. Along with making sure that your child is safe and healthy, it is also time to start planning for their future. Although you probably do not want to think about what will happen to your child when you pass away, it is a serious conversation that needs to be had. Investing in the right life insurance policy is the best way to ensure that your child will be well taken care of after you are gone.
There are two main types of life insurance to look in to, whole life and term life. Term life is the less expensive option, and provides insurance coverage for a limited amount of time. This is a good option for parents since it will provide coverage for the critical period of your child’s life. Whole life insurance provides coverage for your entire life, and guarantees a death benefit when you pass away, as long as you pay the premiums. These policies will also accumulate cash value that can be borrowed against.
When deciding on the right amount of coverage, it is important to consider your lifestyle. If you are a working parent, you should invest in a policy that is at least double your yearly income. If you are a stay at home parent, you should invest in a policy that will cover the cost of all you do, including childcare, tutoring, housekeeping, and more, which can easily add up to $100,000 or more, a year.
For all of your life insurance needs as a new parent, contact Gant Insurance Agency in McKinney, Texas. We will work with you to ensure that you have the right amount of coverage for your specific situation.