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When a family has a new baby, the parents want to do everything they can to protect the baby from harm. It is a good idea to have an insurance review with an agent from Don Allred Insurance, serving Burlington, NC, and the surrounding area, to adjust the life insurance coverage of the parents to protect the baby if something happens to one or both of the parents.
Some parents also like to get life insurance for their baby, not because there is such a great risk for the baby but because whole life insurance when purchased at a young age is very inexpensive and is an investment that gains cash value over the years.
How much life insurance is adequate?
The amount of life insurance that parents should consider is what would cover the loss of parental income for the years that the baby needs to grow up. Most calculations of this amount are for 18 years or for 21 years.
Some parents like to add the estimated cost for the baby to attend a college or university as part of the life insurance coverage. It is nice to add a bit more to give the young person a secure start in life without having so much financial stress.
What type of life insurance is a good choice?
Life insurance is offered in two basic categories with a number of variations. The life insurance that serves as an investment is in the category of whole life. This category includes universal life insurance also. This type of insurance builds up cash value over time as the premiums are paid.
Term life insurance pays beneficiaries upon the death of the insured person; however, it does not build cash value. There are also many other types of life insurance that are suitable for different needs and goals.
Contact an agent at Don Allred Insurance in Burlington, NC to get professional advice about the different types of insurance that are available and get a quote for life insurance to provide protection for your lovely new baby.