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Home › Articles › Life Insurance › Life Insurance

Life Insurance

What Is It, and How Much Do You Need?

By Megan Fowler

Pages:  1  2  3  4  

"But everything comes down to the financial need of the family," says DerKacy. "No two families are identical." It is not always necessary to begin a term policy for a child if parental coverage is sufficient. For example, John and Susan Fraser of Chicago have been married for nearly nine years and are expecting their third child this May. "We didn't change anything until we found out about this pregnancy," Susan says. "John changed jobs so we upped our coverage, but didn't think to do it before then." None of their children have term policies; their family relies only on the parental policies.

What does expecting a child mean when it comes to insurance?

If you already have an insurance broker or agent, be sure to tell him or her about the pregnancy as soon as possible. Reyna suggests starting any policies for yourself or your first child by the second trimester, before any medical conditions develop. Any additional children can usually be insured at any time if the first has little or no difficulty. During pregnancy, your doctor already has all your current medical information so there is generally no need to do a new exam.

Finally, take a deep breath and know that life insurance is not as complicated as it sounds. With a little research and familiarity, you'll find exactly what you're looking for. "Insurance is like preventative medicine for your finances," says DerKacy. "Look for the loss and be prepared to cover it."

Life Insurance Checklist
  • A total review is in order – including your employment benefits – with each new child.
  • Check your disability benefits in the event that the working parent becomes injured and unable to work.
  • It's best to begin looking at your financial situation before the second trimester or your first pregnancy.
  • Be sure not to overlook change of beneficiary. It's easy to forget to add additional children if you're not changing the policy.
  • Name someone to take over childcare and final responsibilities in the event of parental death.
  • If you have more than one policy established, it is possible to consolidate them into one plan – but be careful of extra charges.
  • Permanent policies are for life and term policies are for a set duration of time.
  • Policies should be based on the financial need of the entire family.


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