When you imagine someone with a life insurance plan, what are you imagining? Until they are older, most people don’t think about buying life insurance. But if you plan on having children, it’s worth it to get life insurance at a much younger age!
There are many reasons for this that range from little-known life insurance rules to the simple fact that you never know what might happen to you and your spouse. It’s one of the main reasons people choose to get affordable car and homeowner’s insurance, even when they aren’t required to by a loan company. And if you’re still on the fence about life insurance, here are the primary reasons to get coverage in Arizona before you ever have children!
Life Insurance in Arizona Is a Must-Have If One Parent Is Staying Home
For many couples, the most challenging part of raising a child is deciding if one parent will stay home or not. On the one hand, staying home to raise a baby will save plenty of money on childcare, and you can rest assured your child is always with someone you trust.
On the other hand, one parent quitting their job to raise a child may cut the family income in half. And if something should happen to the breadwinner, then the remaining parent may have no money left to raise the child.
But with life insurance, you can take out a term policy on the breadwinner for the next few years. As long as the death benefit is equal to or higher than their salary over these years, the remaining parent will be financially covered and can eventually return to work when the child is older. To get started, you just need to find a reliable insurance company.
You Can Save Money
Perhaps the most persuasive reason to get affordable life insurance in Arizona before you have a baby is this: it can save you money. In some cases, it might save you quite a bit of money!
One reason for this is age. Simply put, you will get a better life insurance rate when you are younger than when you are older. And you can always get a term life insurance policy and lock in that great rate for the next three decades. This is a far better choice than waiting until you are older and paying a much higher premium.
Another reason involves weight. Life insurance policies tend to be more expensive for people who weigh more because insurance carriers think such people are putting their health at risk. Unfortunately, most insurance carriers don’t make weight exceptions for pregnancy. This means a woman can get a better life insurance rate before she is pregnant or early in the pregnancy than she can later in the pregnancy or right after the baby is born!
On a related note, a woman may develop certain health conditions because of her pregnancy. This includes high cholesterol, high blood pressure, and gestational diabetes. All of these can lead to a higher life insurance premium, but you can avoid this by getting life insurance before these conditions develop.
An Easy Backup Plan for Arizonians
Most parents who purchase life insurance in Arizona think of the coverage as a kind of “backup plan.” Basically, if something happens to the parents, their child will have some money to fall back on so he can get back on his feet.
Over time, you can build a better backup plan for your child through investments, trusts, and other contingencies. But many parents are relatively young when they have their first child, and they may not have the time, knowledge, or resources to make such investments.
But a life insurance policy is surprisingly affordable and can serve as an easy backup plan if one or more parents die. So long as the child is the named beneficiary, he will get one hundred percent of the death benefit, and all without having to worry about income tax.
Existing Life Insurance May Not Be Enough
Some soon-to-be parents hesitate to buy new life insurance for a simple reason: One or both of the parents may have a life insurance policy through their employer. But is this policy enough to truly protect their child?
In most cases, the answer is “no.” Many basic employer life insurance policies offer enough of a death benefit to help with things like basic funeral expenses. But to really protect your family, it’s good to have a policy equivalent to at least five times your annual salary.
The good news is that there are no laws in Arizona to keep you from taking out an additional policy on top of an employer policy. And in case you should lose your job and therefore lose your employer’s life insurance coverage, you can rest assured your family is still protected.
Choosing the Right Life Insurance Plan in Arizona
Now you know the primary reasons to take out an insurance policy before you have children. But if you are relatively new to insurance, you may be wondering which life insurance plan is best for you.
Generally speaking, life insurance coverage comes in two different forms: term policies that last a certain amount of time and permanent policies that last your entire lifetime. While each plan has benefits and drawbacks, we usually recommend term life insurance to expecting parents.
That is because term life insurance typically offers both better premiums and a better death benefit. And on top of that, you can lock in a good premium for up to 30 years. So whether you want decades of protection or only want coverage up to a certain point (such as when your child graduates from college), a term life insurance policy has you covered!
Just keep in mind that a term policy will end when the designated “term” is up. You cannot recoup any of the money you have spent on premiums during the time the term life policy was in effect. On the other hand, whole life policies are in force as long as the premium and other qualifications are met. In many cases, people borrow money against their whole life policy for items such as college. Any borrowed money must be paid back, however, or it comes out of the eventual payout upon your death.
Get the Best Life Insurance Policy in Arizona Today
Now you know why life insurance is so important. But do you know where you can find the coverage your family needs?
Reach out to a trusted insurance agent for affordable life insurance and other life planning. You can get a quote online, visit a convenient local office or just pick up a phone and give us a call at 800-330-5190.