Congratulations, you just found out you're pregnant! Now that your life is changing and you're about to have a new little person to take care of, you may be looking ahead to their future, and yours. One of the most overlooked ways to plan for the future is investing in life insurance.
Should I Get Life Insurance?
The short answer is yes. If you have anyone who is dependent on you, you should have life insurance. This includes people who are married, parents, and people who care for ailing family members. Whether your loved ones are dependent upon you for financial support or for their care, you should still pursue a life insurance policy. Having a life insurance policy means that, should something happen to you, your loved ones will have enough money to either replace your income or find someone who can take over their care. Stay at home moms should also consider investing in a life insurance policy in order to support their spouse in the event of their untimely passing. That money can go toward taking time off of work and finding quality childcare. It's also especially important for single parents to have life insurance since they are the sole providers for their children. Unless you're in the rare circumstances of having large enough savings to replace 10 years worth of income, you should have life insurance.
How Much Should I Aim For?
…show more content…
To do this, take your annual income and multiply it by 10. For example, a person who makes $40,000 annually would purchase a $400,000 policy. Aiming for 10 years worth of income gives your family a nice financial buffer to maintain their lifestyle for several years. It can also account for unpaid debts and other unexpected costs. If you're unemployed, you should still seek out a life insurance policy. Stay at home moms have an estimated value of $100,000 per year. Although most people settle for a conservative $500,000 policy