What Expectant Parents Need to Know about Life Insurance

Pregnant couple

Adults usually begin thinking about life insurance once they’re ready to raise a family or after their first child is born, since they want to provide security for their families.

Here are four typical questions that expectant mothers and fathers frequently ask about life insurance while pregnant:

Which family member should have life insurance coverage?

Should the unthinkable occur, life insurance helps to make sure that your family has financial protection. Anyone contributing to the financial support of a child or children should consider getting adult life insurance.

Also, parents may want to consider getting children’s life insurance coverage for their little ones, starting as young as 14 days old. The Gerber Life Grow-Up® Plan1, for example, builds cash value during the life of the policy and allows your child to become owner of the policy at age 21. Your child might decide to keep the policy, cash in the policy or buy additional insurance.

When is the best time to buy adult life insurance?

The short answer: the sooner the better. Life insurance premiums are determined by age, health, and lifestyle. So it is best to apply for life insurance when you are young and in good health in order to obtain the lowest premium rates.

Is Whole Life or Term Life insurance better for new parents?

There is no such thing as a “one size fits all” life insurance solution. What’s important is to understand how much coverage you will need to protect your family, and then to determine which kind of coverage will meet that need.

Young families that may not have disposable income, but need a large coverage amount, will usually opt for term life insurance policies, such as the Gerber Life Term Life Plan2, since this kind of coverage costs less initially.

On the other hand, whole life insurance policies such as the Gerber Life Simplified Whole Life Plan3 may cost more but provide lifelong coverage and build cash value over time. The cash value could become a potential source for borrowing against, should a need develop down the road.

Do stay-at-home parents need life insurance?  

Absolutely. Stay at home parents should have life insurance to cover day care and other costs that will be incurred if they are no longer here to care for the children and household.

1 Policy Form ICC12-GPP, Policy Form Series GPP-12

2 Policy Form Series SLT-05

3 Policy Form ICC13-SWLP, Policy Form Series SWLP-13

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