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5 Things New Parents Should Know About Life Insurance

If you’re a new parent, there are likely a lot…

If you’re a new parent, there are likely a lot of concerns swirling in your head regarding your child’s future. You might be thinking about which schools may be best for your child, or when you should start saving for their college or secondary education. You may even still be making the decision of cloth or disposable diapers. 

While there are many decisions you have to make for the future of your children, you should still keep life insurance on your radar as a topic that deserves your time. Getting life insurance coverage is a key way to protect your family, including your newborn, in case anything happens to you. If you are a new parent or are a parent of a young one but want to brush up on life insurance information, read on for five key facts to know about coverage. 

1. There are two types of life insurance.

The first thing you should know about life insurance is that there are two different types, and they are each made for different situations. The two types of life insurance are term life and permanent life. The best life insurance is going to be the type that best suits your personal situation, of course. So, it’s important to research these options. Term life coverage means it is coverage for a fixed amount of time, and it is typically the most simple and affordable life insurance option. Permanent life insurance is one that builds cash value and is best if you are wealthy or have a lifelong dependent.

2. Term life is probably good enough.

For most situations, term life is a good enough life insurance option. If you are wealthy or have a special situation with a lifelong dependent, such as a dependent child with special needs, then you may want to consider permanent life insurance. However, term life insurance is more affordable and therefore you can direct more of your time and money investment in other steps in your life, such as purchasing a home for the first time. Just like life insurance information, you should seek a jargon buster for first home buyers in order to make sure you have all the clearest information about buying a home.

3. Both parents should have life insurance 

Whether one person in a couple is the breadwinner or makes more money does not matter. Both parents should have life insurance to make sure they and their family unit are fully protected should anything happen that jeopardizes someone’s health. After all, there are some non-monetary services that jobless parents provide, such as daytime care, that do have a value that should be protected if they die.

4. There are different factors that affect how much you pay

Just like different factors may affect how much you pay for auto insurance, there are categories that affect how much you pay each month for life insurance. These include age, biological sex, general health and wellness, smoking, and even hobbies. Typically, women pay less for life insurance than men. Younger folks pay less for life insurance than older folks. Those who have lived healthy lives free of threatening diseases and conditions and free of smoking habits will pay less. And, while you may not have thought about this, those with more dangerous hobbies such as scuba diving or cliff jumping will pay more for life insurance, as they put their lives in danger quite often. If you are a smoker or are in poor health, consider enrolling in services to help you quit smoking or develop healthier habits. Then, not only will your insurance payments be lower, but you will also add years to your life that you can spend with your new child.

When it comes to purchasing life insurance with a progressive disease diagnosis like Alzheimer’s, it’s important to find a plan that’s best suited for you. This involves reading the fine print working with a life insurance broker who is able to help you find a policy that’s reasonable and offers reliable coverage. According to The Fisher Center for Alzheimer’s Research Foundation, the price of a life insurance policy can vary, which is why they suggest you shop around and thoroughly go through your available options. For more information, visit

5. Always name a spouse as your beneficiary.

If you have a spouse or life partner, they should always be named as your beneficiary rather than your newborn child. The reason for this is that if you die before your child gets to be of legal age, which is 18 in most countries, they will not be able to access your life insurance money until they get to be 18. In some cases, that could be years, and it means that a court would have to appoint a guardian to the minor beneficiary. You can avoid this by naming a legal aged partner or spouse as your beneficiary.