Baby on the way. What additional insurance do I need?

Question

currently have life insurance through work for 5X my salary. Do I need more and/or life insurance for the baby. All help appreciated

Answer 1

Not knowing a ton about your situation, I would have to say from the surface of what you've said that you need more insurance. You'll read that most people should have 7-10 times their income as a general rule. A good insurance agent will do a survivor income needs analysis and an immediate cash needs analysis to provide you the right amount of insurance you should. You should now be taking into account how much income your significant other who would be taking care of the baby would need if you were gone and not able to provide it. As for insurance on the child, I think its a good thing to add. At the life insurance company I work for you can add a child rider of $10,000 for $4.30/month which will cover every child you have. Unfortunately things can happen to children and funerals are not cheap, I had a client have a newborn pass away recently and it was tough on them and expensive. I would get the process going on adding more insurance if I were you.

Answer 2

Drop the coverage through work!!! That is the first thing to do. Unless you KNOW for sure that this is 100% life insurance rather than accidental. If accidental, DROP IT IMMEDIATELY!!!! Your family won't receive a dime if you pass due to natural causes. You MUST die by an accident. Find an insurance company that will cover the entire family on ONE policy- you as primary, spouse as a rider and small payment for covering this child and any others you have now and will have in the future. Ask these questions- Do you want debts paid off?If all debt is paid, do you want income replaced- how much and for how long? Do you want mortgage paid? Childrens education paid? Funeral paid? Consider level premium term insurance for as long as possible- up to 35 years.

Answer 3

The only reason to get insurance on a baby is if there is a potential that in the future, the child would not be able to purchase insurance because of some medical problem. Other than that a child is not usually a wage earner and would not have dependents to support in the event of its death.

Answer 4

Life insurance with critical illness coverage will be good.
Some of the medication is way too expensive to treat critical illness.

Another option will be a saving plan offered by an insurer with insurance protection. The earlier you start such a plan the more money your child will gain. The power of compound interest

Answer 5

You know, that's a rough question. What do you want the life insurance to DO? And is that enough money to do it, for the time period?

Now, YOU can answer it!

OH, and I NEVER EVER EVER recommend insuring the baby's life. I think it's a major waste of money, unless your employer will let you add on to your group policy for $1 a month or some such.

Answer 6

If you died today, how long would 5x your salary actually take care of your child? Is that long enough?

Also consider disability insurance in case you are sick or hurt for a long period of time, it will help pay for diapers, mortgage, college fund, etc. Being disabled for longer than 90 days during your working years is more likely than dying.

Answer 7

8-10X is the recommended amount in this situation. You do not need life insurance for the baby, but you definitely need to write up a will if you have not yet.

Answer 8

well, just a quick note....will u have protection if you leave your job? make sure about that you r doing the right thing to start taking responsibility, but take it one step further, and buy some term unless u will be staying at your job for a very long time...25 30 yrs. good luck on the new family member...

Answer 9

yes