Life Insurance: Your Baby is Royalty, too!

The media has gone baby crazy after the recent birth of Britain’s Prince William and Kate Middleton’s baby boy christened Prince George, or as the media has dubbed him – the royal baby.  Let’s be honest though, regardless of who the baby is born to, we all like to treat our children like princes and princesses.

The arrival of a child is one the most magical events in people’s lives, and as soon as you gaze down at that tiny, squishy face for the first time you realize that you’re not just living life for yourself anymore, you have a new purpose in life and you’ll do anything to keep that baby happy forever. Parenthood brings out an inherent sense of selflessness and devotion from within us, along with a fierce protective nature we didn’t know could exist at such levels of intensity.

While every parent wants the very best for their child, most parents, especially those who have given birth to their first child, don’t really know where to start, and more crucially how soon they have to start. Remember, from the word go and up until the next couple of decades at the very least that child will look to you for protection, guidance and safety. Even the greatest of affection and the noblest intentions however can be thwarted due to ill judgment and a lack of knowledge.

So for those who are planning on having a baby in the future or have recently given birth to a child, you must know how to protect your child’s future, and how that means securing your own future more than anything else.

Life insurance for the child

First things first, should you buy a separate insurance policy for your newborn? The answer depends on how much disposable income you have. While the premiums are low, so is the payout, so don’t look for a bumper swell in your kid’s coffers in the future, but if you do invest in such a policy, the benefits could account for a decent base for the kid’s college fund. Also, if you get a permanent life insurance policy with a guaranteed insurability rider, which will ensure you child has a policy at the best possible rates for his or her entire life, regardless of any medical complications they may pick up in the future. When you child gets older he or she can also borrow money on the policy, which means they have a convenient method to access loans in case they need any.

Life insurance for the parents

Above all though, make sure you and the mother have comprehensive life insurance policies taken out on yourselves, because nothing will secure your child’s future as much as this. Not only will it provide your child with security in case of something unfortunate happens to his or her parents, but also, a term based life insurance policy will provide a good chunk of capital in the future, and as such is a prudent form of investment. For example, a long term insurance of 20 odd years taken out when the baby is a newly born means you can provide him or her with a very stable base when they begin their lives as adults and professionals. Furthermore, depending on the timing of the policy, you can pay for the child’s college or better secure your post retirement future if you’ve spent your savings on the child’s education, so it’s a win-win either way.

The younger and healthier you are, they cheaper the premiums, so do the math and get a policy as soon as conceivable. If you are reading this only because you plan to have babies in the future, don’t even wait till the baby is born, get life insurance for yourself and your wife before she gets pregnant, because complications during pregnancy can cause an increase in premium rates and extreme cases even outright refusal for a time period. Most times though the complications don’t cause any permanent damage though, which means as long the mom is healthy; she can apply for an insurance policy at a later date, typically six months after the pregnancy.

In today’s day and age, a life insurance policy is not only prudent financial planning, but an absolute necessity. This is only made more apparent when you have a new life in your house that is totally dependent on you. Find the best rates for life insurance policies when investing though, and guard against unscrupulous agents or other sources that are likely to push you towards one particular insurer based on their commissions. Assess all your options before investing use an online tool such as AccuQuote, IntelliQuote or any such website. Look for one that provides the most sensible and reliable advice, and has a wide array of big insurance brands under its umbrella, because this is a good indicator that the site will not favor one of its associated brands over another, and will provide you with the fairest offers possible.  

Author bio: Frank Mitchell has worked as a life insurance agent for 10 years.  After an accident in 2011 that kept him at home for more than a year, Frank started offering advice on forums and other social media networks. He now works as financial advisor and in his spare time writes articles on subjects he is passionate about. On the weekends, you’ll find Frank dirt biking.