My wife and I are expecting a child in 6 months and want to make sure we have the proper life insurance in place to protect the family. Do both my wife and I need life insurance, and does the baby need it too?
What Are Some Reasons An Expecting Parent Should Get Life Insurance?
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Most expecting parents have not had time to build up a good nest egg before the birth of their first child, and it is really hard to grow it while raising children. Life Insurance provides a large, immediate source of income upon death, and has a very reasonable price at your age. Since your need is limited, 20 to 30 year Term insurance would suffice on each of you, and that is very affordable.
If you like, you can add your baby to the policy for about $5/month, and that will ensure that he/she is able to get life insurance for the rest of his/her life, even if he/she would develop an uninsurable health condition later on.
Such an exciting time and what a lucky baby to have such thoughtful parents. Wishing you all the best.
PS You will probably need to wait until a few weeks after the baby is born for Mom to get her policy.
In regards to insuring the newborn it would be to guarantee the child's insurability. Meaning if the child has a major medical condition we are able to ensure we have a life insurance plan in place for the rest of the child's life. As the child may not be able to buy coverage due to poor health in the future. Many policies have what's called a Guaranteed Insurability Rider. At certain ages or milestones you can increase the death benefit without underwriting.
Another reason for getting a whole life policy when expecting a family is to be able to provide money for the children's higher education ie tuition. And there are many other reasons as well! If you would like more information and advise please contact me!