Life Insurance for Expectant Fathers
Having children can be a time of great joy but also anxiety. Suddenly you have this little person who is dependent on you in every sing way, including financially. Added to that, children are expensive and your finances are going to be stretched more than ever.
This makes getting life insurance a great idea as you’ll be able to cover these increased costs should anything happen to you. But what do you need to cover? What type of insurance should you get? Is it worth it? These are the types of questions that will be running around your brain and we can help with that.
Why should I get life insurance?
There are many different financial commitments you’ll have with children over the years. Your partner trying to cover these on a single income if you can pass away can be near impossible.
Childcare is extremely expensive and there are also educational costs such as equipment and uniform. This can be vastly increased if you wanted your child to have a private education but even with state education, the costs can stack up.
Then there are the day-to-day expenses such as increased food bills, clothing, toys and reoccurring costs such as birthdays and Christmas.
Added to all these factors are your regular outgoings such as rent/mortgage and your bills. Most couples will find a way to cope with these increased incomes but on a sole income could be a different story. This is why life insurance is a great idea to act as a safety net.
If you’re already a single parent then life insurance can be a wonderful way to make sure your little one won’t have to worry about financial support. These funds could be placed in a trust or used to help out the child’s guardian.
Types of life insurance
If you’re looking at getting life insurance then you need to know the different types available. Once you do, you can work out which one is right for you.
Full Life Cover – This policy is where you agree to pay a monthly premium indefinitely and you’ll receive a standard amount of cover depending on that premium. This can be ideal for those looking for a high cash lump sum after they pass away and who don’t mind paying higher premiums.
Term Insurance – With this type of insurance, you aim to covers something specific, usually a repayment mortgage. With this, your insurance premiums will reduce in line with your mortgage payments so you never have to leave your partner with the financial burden but without paying such high premiums.
Critical Illness Cover – This is a specific type of life insurance policy that can be added to whichever type of insurance cover you opt for. It can help you with the cost if you’re diagnosed with a critical illness and can help negate a loss of income or cover medical expenses.
How to choose the right cover
The first thing that you need to think about is what it is you’re trying to cover? If it’s just your mortgage then you’ll need a different type of cover than if you were looking to simply leave a large lump sum for living expenses.
To do this, it’s a good idea to take a look at your finances. If you think your partner could cope fine with the other costs without the burden of a mortgage then you can just cover that. If you feel they’d need more a safety net, a higher level of coverage is needed.
Rather than thinking of life insurance as just one big monetary figure, it makes more financial sense to tie it in with your financial situation to get a policy suitable for you.
This is why term cover can be a great solution as the monthly costs aren’t going to be as high which can be crucial when you have all the other costs to think about with a baby on the way.
Getting a policy that grows with you
A misconception with life insurance is that you’ll be stuck paying a static monthly amount with no flexibility. While some policies may be like that, it doesn’t have to be that way.
A better idea is to get a more flexible policy that can grow with your situation. It could be that you don’t have a mortgage now but will have one in the future. You don’t want to have the inconvenience of having multiple policies.
There is also the idea that for young people, life insurance is a waste of money. The truth is that for healthy young people, premiums can be minimal and you can get that cover straight away.
Protecting your child
As an expectant father, you'll soon feel the weight of responsibility like never before. While that may sound daunting, trust me that being a father is the best feeling in the world. It’s important to make the right decision based on your circumstances but having that safety net of life insurance will allow you to breathe a little easier. It’ll stop you worrying about whether your child will be okay financially should the worst happen.