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Insurance
Information
From the desk of Jay Coffey
In
2002, there were over 4 million babies born across
the United States and the birth rate is projected
to reach 4.5 million by 2017. As a
result, an increasing number of parents will face
a lot of decisions that come with the responsibility
of caring for a family. If you are planning to have
a child or if you are a new parent, take a moment
to review your current life insurance coverage and
evaluate how your newborn will affect your insurance
needs. Doing so will help you make the necessary adjustments
to fully protect your growing family. This month,
we'll cover the three steps to take when deciding
which life insurance coverage is right for your newborn
and family.
Question: What life insurance coverage
should I consider as a new parent?
Answer: Here are three necessary
steps to take when choosing life insurance for your
newborn:
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- Gather
Information...As a new parent, you should
evaluate your existing life insurance policy to
determine whether it offers good protection at competitive
rates, the appropriate amount of coverage and the
correct beneficiary designations. Rates vary over
time and have declined steadily since 1996, so it
may be helpful to get a new quote for your current
policy.
- Determine
Coverage...It is often overwhelming when
determining which coverage is right for you, because
life insurance policies can vary significantly.
Keep in mind that the cost and availability of life
insurance is influenced by a person's health, age
and type of coverage requested. It's often helpful
to have your agent explain all your options.
- Designating
a Beneficiary...After the birth of the
child, you should update your beneficiary designations.
Both a primary and a contingent beneficiary should
be named to ensure funds would be available immediately
to the family, rather than flowing to the estate,
which could result in delays and additional expenses.
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