Life Insurance

Some Key Tips for Getting a Life Insurance Quote as a New Parent

Life Insurance by Life Stage

The choices you make today can impact your long-term health, wealth and happiness. Understand the important role Life Insurance can play in key life events.

A newborn always brings joy to a family. But new parents can also feel an added responsibility to help secure their child’s future. Here are the tips that may help.

Welcoming your little bundle of joy is one of the most precious moments you’ll ever experience. You’ll be understandably overwhelmed with love and happiness. Yet, there’s another emotion that will emerge as soon as you get home with your newborn.

Responsibility.

You’re now responsible not only for your life but also for a whole other life that depends solely on you. Naturally, you want to protect your baby in every way possible and provide only the best. That doesn’t only concern affection and nutrition but also the child’s safety and future.

It’s just that life can sometimes take unexpected turns. It’s not unheard of for a child to lose a parent, or both of them, at a very young age. Even if that happens later in life, you’ll still want your child to have excellent care and all that they need for the future. Often, this includes the support of financial resources.

It’s not a surprise that many new parents start to think about Life Insurance as they assume their new roles.

What kind of cover should you consider? Where can you get a quote? Life Insurance doesn’t have to be complicated at all. Take a look at these critical tips for new parents that can help you provide security for your family.

How to Get Life Insurance Quotes as a New Parent

Here are some aspects of Life Insurance that new parents like you may want to pay attention to. They’ll hopefully make it easier to get quality Life Insurance​ for your family.

1. Talk to Your Employer About Life Insurance

You may have heard that some employers set up group Life Insurance for their employees. Could it be a more affordable option for you?

Premium rates may be lower than the premiums for you obtaining your own life cover. That’s because the overall health of the whole group gets averaged out. So if you have a health condition, it may not affect your premium rates as much.

Contact your human resources team to find out if this is an option at your company. It may be a quick and simple way to get a Life Insurance policy​.

2. Be Careful of Making a Child a Beneficiary

It may seem like a natural thing to do, but you might want to re-consider before you nominate your child as a beneficiary.

In Australia, if the beneficiary is a minor, they will generally have to wait until they are 18 to receive the money in their name. Their legal guardian or trustee would control the proceeds in the meantime.

It’s better to consider designating a trusted adult to manage the money or set up a trust. For the latter, you would make the trust the beneficiary and appoint a trustee. For example, the trustee can be your spouse or another family member or a trusted friend. That’s usually preferable than waiting for the court to appoint someone to administer the funds. These situations can become complex, so you should consider getting professional advice (such as from a lawyer and/or an accountant) when making decisions concerning trusts or guardians.

3. Consider Getting Life Insurance for Both Parents

It can be a great idea to get Life Insurance for both parents. Even if one of the parents doesn’t have an income, they can still purchase Life Insurance.

After all, there is no doubt that a non-working parent is a valuable member of the family. They take care of the home and more importantly, the children. In the event of their death, the surviving parent would probably have to pay for help around the house. And they may need to take unpaid leave from work to take care of everything. Things would get a lot easier if there was Life Insurance in place.

Help Protect Your Children’s Future

Every family is different. You have your own financial needs and resources. But these tips are general and can apply to most families. No matter the number of children or your financial standing, you’ll want to take steps to help secure your family’s financial future even if you’re not around.

Ultimately, getting Life Insurance for both parents is something to think about. It doesn’t matter if a parent isn’t a wage earner.

 

You might still be thinking…

Do you need Life Insurance?

That is a question that only you can answer. You may choose to get some professional advice or to carefully consider your own needs and circumstances and deal directly with a Life Insurer like NobleOak who can provide you with general advice and product information.

 

Disclaimer: This is general information only and does not take into consideration your individual circumstances, objectives, financial situation, or needs.

Please do not use this information as a substitute for getting a proper quote and deeper assessment of your choices.

Resources:

https://www.nerdwallet.com/blog/insurance/a-new-parents-guide-to-life-insurance/

https://www.securian.com/insights-tools/articles/life-insurance-tips-for-new-parents.html

https://www.grangeinsurance.com/tips/5-life-insurance-tips-for-new-parents

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