When a baby is born the parents are instantly bombarded with extra responsibility changing diapers, feeding and clothing the baby, but by far the most important responsibility is to provide and care for their new family, both in the present as well as the future. But what if that future didn’t include the sole bread winner?
The answer is simple, life insurance it is the best, easiest and most affordable way to ensure that your family have the life and education they deserve.
In a nut shell, life insurance is a policy that is purchased through a life insurance company that in the event of the policy holder death the insurance company must pay the named beneficiary the value of the life insurance policy, provided that the policy holder has paid his / her monthly premiums promptly.
No one plans to die especially if they are married and have young children to provide for. If you have just welcomed your first baby into the world and you already have a life insurance policy, the first thing that you need to do is to re-evaluate your existing insurance policy to ensure that it still meets your individual needs. As a matter of fact re-evaluating your life insurance policy on a regular basis (at least once a year) you could actually save yourself some money.
Even if the entire family is dependent on a single bread winner, it is of the utmost importance that both parents have sufficient life insurance cover. You may find yourself asking just how much life insurance will be needed?
Always purchase insurance policies that offer no less than four to five times the sum of your yearly salary.
Life insurance policy holders should be advised to update and name all beneficiary designations immediately after the birth of a baby. Another important fact is to name a contingent as well as a primary beneficiary. This is done to ensure that in the event of your death funds are instantly available to your family instead of going into your estate which could take a considerable time and money to finalise.