Popular Science Posts | A guide to life insurance for families with newborn babies in the United States

The better news is that life insurance is now more comprehensive than you might think, and there are different types andBranded Insurance Products, which can meet the comprehensive needs of your family.

(>>>Related reading:American life insurance types introduction price and premium and comparison of advantages and disadvantages of types )

1. What is the use of life insurance for new parents?

Life insurance is a financial product that builds a financial safety net.

It provides a tax-free benefit for the entire family in the unfortunate event of a major family member having an accident and unable to continue earning income.

As a new parent, the process of purchasing life insurance is divided into 3 parts.

First, select the insurance claim amount and insurance type that meet the needs of the family, designate the selected beneficiary, and pay the premium on time, and the whole process is completed.

The beneficiary can use the money to pay for any daily living expenses - such as paying off the mortgage, or medical bills, school fees, etc.

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2. Life Insurance Options for Newborn Parents

Facing the arrival of a new member of the family, we need to think clearly,What do we need life insurance to do for me?

Is it to pay off the mortgage of the children and family?Is it to support your child's secondary or university education tuition?Is it to provide a stable source of living expenses for the children?Or do you want to find a channel to create a tax-favorable cash value accumulation account for your child?

Our answers to these questions directly relate to what type of life insurance should be chosen.

• Term life insurance  Provides coverage for a specified period of time, usually ranging from 10 to 40 years, it is a pure consumer life insurance with no cash value and is used to pay claims in the event of an accident.
• Whole life insurance Offers a lifetime of coverage and offers a "cash value" account. A "cash value" account is discretionary and is usually used for urgent financial expenses,Supplementary college tuition and retirement income.

After identifying the type of life insurance, we canLife Insurance Financial Advisorwith the help oflife insurance marketChoose your favoriteInsurance Products; If we fully understand the product information we need, we can also directly contact the life insurance sales broker to purchase specificInsurance Products.

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3. Newborns are the best time for parents to insure them

The cost of life insurance is determined by many factors, which is also what life insurance has been criticized for - the cost is not transparent.But it's worth knowing that the younger the policyholder, the lower our costs.For newborns, the cost is much lower than for adults.

Second, the healthier you are, the lower the cost of insurance.People who don't smoke, don't drink alcohol, and don't enrich any high-risk activity groups, tend to get more affordable coverage results.In the process of growing up, children may form one way or another of living habits, but as a newly born baby, these conditions are fully met.

therefore,neonatal stage.Often one of the best times to be insured, it's the best reason why we buy life insurance for our kids.

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4. Benefits of buying life insurance for new parents

Children will benefit if both parents have life insurance policies.For many Chinese families, it is usually considered that I have no income, and staying at home to take care of children is my main daily job, so should I also buy life insurance?

Simply taking into account the various service expenditures for caring for infants and young children, future education expenditures, etc. - the absence of parents financially will have a huge impact on the growth of children - using insurance as the bottom financial safety net of the family will enable the entire family income.

After the child is born, as a parent, it is a wise act to buy your own life insurance.

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5. Life insurance accompanies children's lifelong growth

We will be with our children for a long time to grow up.

It's no surprise that raising children is expensive.According to the U.S. Department of Agriculture, for middle-income households,The cost of raising a child today is $233,610^*- This does not include the cost of college, if one of the family members has an accident, can you or your partner's financial situation continue to support the cost?

Therefore, even if our child has just been born, now is the perfect time to deploy life insurance options for our child, which not only adds an umbrella of financial security to the child's new life; more importantly, parents will also Gain psychological peace and security - to grow more at ease with the most important people in our lives. (End of full text)

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appendix
*. Lino, Mark.“The Cost of Raising a Child,” US Department of Agriculture, January 13, 2017.