July 1, 2016 by Troy Baccus

Having a baby? Buy life insurance.

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Having a baby life insurance If you are having a baby then one of the most important financial things to do is secure life insurance for your family. The reason life insurance becomes so much more important when a child is born is because the new life is 100% dependent on care and guidance for at least 18 years.

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If you are having a baby then read through the scenarios below to help determine how life insurance might pertain to your situation:


1. Two parents, both parents work full time

In this scenario it is important to insure both parents for their financial contribution to the family. Each parent should carry approximately 18 to 23 times their current annual salary plus a little extra. In many situations the result is a life insurance benefit of around $1,000,000.

Example Life Insurance Quotes:

Female, 35, Montana, healthy, non-smoker

  • $1,000,000 benefit, 20 year term
  • $39.59 per month 

Male, 37, Montana, healthy, non-smoker

  • $1,000,000 benefit, 20 year term
  • $44.99 per month 

2. Two parents, one works full time, one takes care of the kids

In this scenario it is important to insure the financial breadwinner of the family for their financial contribution. As stated above, 18 to 23 times the breadwinner’s salary is close to the right amount. The other parent should be insured as well but it would be for protection against the added expense of having to take on daycare services and care. Sometimes less life insurance is required for the stay-at-home parent.

Example Life Insurance Quote: 

Female, 32, Florida, healthy, non-smoker

  • $500,000 benefit, 20 year term
  • $18.38 per month 

Male, 32, Florida, healthy, non-smoker

  • $1,000,000 benefit, 20 year term
  • $36.20 per month 

3. One parent only

Life insurance is very important for a single parent. In the event of your untimely death you should have a plan in place for who would take care of your child. Additionally you should leave enough of an inheritance behind you  so that the god-parent has the financial resources to raise your offspring. Some factors take into account are your current assets such as savings.

Example Life Insurance Quote: 

Female, 27, California, healthy, non-smoker

  • $750,000 benefit, 20 year term
  • $21.75 per month 

Wow, life insurance is cheap!

As you can see in the examples above, life insurance can be very affordable. That is not always the case though. If you wait until you are older to buy life insurance then the premium will be higher. Also, if you develop a health condition then you can expect to pay a higher premium or even be denied coverage. Don’t wait until you get a health scare to buy life insurance, people! The best time to buy life insurance is when you are young and healthy.


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Summary
Life Insurance
Service Type
Life Insurance
Provider Name
Montana Life Group,
Area
Available in most states.
Description
If you are having a baby then one of the most important financial things to do is secure life insurance for your family. The reason life insurance becomes so much more important when a child is born is because the new life is 100% dependent on care and guidance for at least 18 years.
The Standard, MetLife, Principal Financial Group, Genworth, & Lincoln Financial Group