Richard Blair has been helping families secure their financial futures for well over 20 years. During this time he has honed his knowledge and has become known as an expert in the financial services industry.
When he started his independent firm Wealth Solutions in 1994, he did so with the goal of providing his clients with personalized advice that will help them reach their financial goals.
One of the biggest topics that tend to come up during the financial planning process is life insurance. If you are a new parent looking for advice when it comes to life insurance, here are 3 tips that will help you protect your family in the event of an unexpected death.
Identify Your Financial Goals
Before buying a new insurance policy, or expanding the coverage you already have, take some time to identify your family’s financial goals.
Keep in mind the purpose of a life insurance policy is to ensure your family will not endure any financial hardship in the event a parent unexpectedly passes away. Identifying your financial priorities makes it easier to figure out what type of insurance you need as well as the amount of insurance you need.
Some of the things you should consider are childcare expenses, private school tuition, whether or not you want to pay off your mortgage, family vacations and college tuition just to name a few.
These are things a good insurance policy would cover in the event of a death.
Buy Your Policy As Soon As Possible
Your health and your age are two of the key factors that will determine how much you will pay for your monthly insurance premium. The younger you are, the less you will more than likely pay.
The longer you wait to invest in an insurance policy the more money you will end up paying. So buy now!
Don’t Focus Only On The Primary Earner
When most families look at insurance policies they focus on only insuring the primary earner. Just because a spouse opted to quit working to take care of the family doesn’t mean they are not contributing to the household.
If the primary earner was to pass away the contributions of the at home spouse would need to be replaced. It is therefore always ideal to have both parents properly insured.
This will ensure neither parent has to endure financial hardship while going through the very difficult time of losing a loved one.