Life insurance is likely the last thing on your mind when you’re welcoming a new addition into your family. But it’s something that should be on the mind of every new mother. It’s an essential piece of protection to have should the worst happen.
Here are five key reasons why life insurance is a must have for any new mother.
- Debt Protection
Debt is a huge risk to any inheritance and a children’s future. You may find yourself in a situation where you’re left with a five-figure funeral sum. This has to come out of your inheritance, and that means you’re taking money from your child to pay for this.
Other debts can also be transferred to relatives upon your death. A life insurance policy offers a financial cushion. The policy will pay your final expenses and any debts, not your young child.
- The Cost of Care
In the event that both parents are killed in a tragic accident, a young child will need someone else to care for them. This may well be free if you send your child to a relative or the state stumps up the bill, but they still need money.
For a start, you want them to have all the things other children might have. A state-owned care home isn’t going to pay for that.
- Higher Education
The death of one or more parents can put an end to any chance of higher education. If they can still get a student loan, they may be forced to turn to short-term lenders, like the money hub, in order to get by.
You don’t want to force your child to take on more debt than they need to in order to achieve their dreams of higher education. Now you don’t have to.
- Immediate Expenses
There are other expenses you might have to take into account. If a mother dies and the father has to step in as the primary caregiver, this is going to put a lot of strain on the family finances. The reality is if your spouse has to cut their hours, or even quit their jobs, your child is going to be found wanting.
Life insurance provides some financial breathing space to get your house in order again. This can cover any short-term living expenses.
- Leave a Legacy
We all want to leave something behind for those we love. You can do this with a life insurance policy. If you die, the cash lump sum will go to your family to pay for anything it might need.
Many mothers leave instructions that the pay out from a life insurance policy should go into a fund that unlocks when their children reach a specific age. This is a great way to provide your offspring with a better footing for when they enter the real world.
Conclusion
A life insurance policy is essential for all new mothers. Don’t waste any time. Take out a life insurance policy today!
By: Carol Trehearn
Photos: GotCredit
