When you find out you’re going to be a parent for the first time, it’s an exciting period, but it’s also slightly scary. After all, you’ll have a responsibility to your child for the rest of your life, and an obligation to look after them. That’s why many parents worry about what might happen if they were to die, and this is often a catalyst for them looking for life insurance. Whether you’re the main breadwinner, or planning to be a stay at home parent, here’s why you should arrange life insurance before your baby arrives.
Covering your debts
Most new parents struggle financially when they first have a baby. It’s often because they’ve got one parent on maternity leave, and have a lot more expenses connected to looking after a young child. Therefore, if something were to happen to one parent, life insurance is needed to cover any debts that the other party will be left with. This could include:
- Mortgage – most young couples still have a large chunk of mortgage to pay
- Credit or store cards
- Student loans – many young parents are still making repayments for education
- Car payments
When this is all combined, it’s unlikely that one parent alone would be able to cover this amount, meaning it’s important to get life insurance with a lump sum to cover debts, as well as expenses while the surviving parent gets back on their feet.
Day to day expenses
From utility bills to swimming lessons, running a family home is expensive, and extremely difficult on one income. Therefore, if you’re expecting a child, it’s important to think about what would happen if you or your partner were no longer around. Life insurance provides a lump sum to help the other partner pay bills and take care of your child when you are no longer around, ensuring they can be financially stable during this difficult time.
Peace of mind
Having a new baby can be an anxious time, and it’s important to plan for the future to give you peace of mind. Life insurance can reassure you that your family will be looked after if anything happens, and won’t have to worry about things such as bills or funeral expenses.
Stay at home parents
If you’re a stay at home parent, you might not think you need life cover, as you’re not bringing income into the house. However, it’s worth considering all the things you contribute, and how much it’d cost to hire someone. If something were to happen to you, your surviving partner would need to pay for childcare, and probably for services such as cleaning and shopping, which means they will need some sort of financial assistance if you were no longer here. Taking out life insurance means your partner will get a lump sum if you die, which can be used to pay these additional expenses, making things just a little easier during difficult times.
To find out more about Ease Insurance’s life insurance products in New Zealand, call 0800 141 889 or fill in your details online for a quick quote.