Motherhood comes with financial challenges, especially if you are a single parent or a new mum. Every year you dig deeper into your pockets. By the time your child turns 18, you have almost reached the bottom of your pockets.
How do you secure your children’s future and take care of your household bills? Life insurance for mums is the answer. This policy protects your children in the event you pass away during the period you’re covered.
In this article, we explore 7 reasons why new mums need to get a life policy. Let’s dive in!
It’s not expensive (unlike what they make you believe)
One of the reasons new mums should take up a life insurance policy is to protect their children affordably, and life insurance is affordable. Term life insurance is especially one of the most budget-friendly if you’re tight on finances.
Life insurance is also cheaper if you start paying premiums while you’re still young, and your premiums will even be lower if you are in excellent health.
Provide your children’s basic needs
If you are a mum and the breadwinner, your household could be financially burdened if anything happened to you.
Your partner would have to hire a babysitter or pay for child care, which is a hefty expense when combined with other household and children’s expenses.
If you have a life insurance policy, your loved ones can use the pay-out to cover these costs if she can’t due to critical illness or death.
Secure your children’s future
Besides having their basic needs taken care of, your children also need a secure financial future. A life insurance policy can help to take care of their college education and provide funding for other life events like a wedding, or provide capital if they want to start a business.
When you are confident of your children’s financial security, you can rest easy knowing you’ve protected them from a difficult life.
Take care of yearly expenses
Besides catering for your children’s basic needs and education expenses, your life insurance policy has a lot more it can do.
Life is incomplete without celebrations. Birthdays must be celebrated and the family might want to go on holiday and celebrate other festivities like Christmas.
All these special events should not pass your children by. With the help of an insurance policy, you can ensure your children enjoy their yearly events to the fullest.
Cater for funeral expenses
Funeral expenses are costly, and your loved ones will have a hard time dealing with the emotional loss and financial burden combined.
You can take out a policy like the Whole of Life plan that guarantees a pay-out regardless of when you pass away.
You can also choose a pre-paid funeral plan where you pay a lump sum or monthly installments to a trust fund or insurance provider. Your money is invested and then paid when you’re gone.
Whichever method you choose, you will be protecting your family from financial concerns during these difficult times.
Pay off any debts you leave behind
Paying off debts is one of the main reasons mums should take a life insurance policy. They do this to ensure their partner or beneficiaries are not left to pay the debts with their money.
A mum’s life insurance would pay off the mortgage, car payments, credit cards and accumulated medical bills if she had been hospitalised.
It’s particularly a good idea to take out life insurance with a term that lasts the length of your largest debt source; for example your mortgage.
Employer-provided life insurance is not sufficient
A lot of employers today offer a form of life insurance they call a “death in service” benefit. The pay-out to your spouse or kids will be tax-free if you die while working for the company.
Usually, the pay-out is two to four times your annual salary, but even this may not be enough if you have bigger dreams for your children’s future. This explains why taking out a personal life insurance to offer more coverage is highly recommended.
Also, if you are a mum and the breadwinner and quit working for your current employer, it would be the end of your death benefits. That is risky if anything should happen to you at that moment.
Have you taken out life insurance for mums?
Kids are expensive to raise. By the time they are 18 years, you might find yourself depleted of your finances, which is not a particularly ideal situation to be in.
It doesn’t have to be that way, though. A life insurance policy will take away your fears if you are worried about securing your children’s future.
This policy can help to cater for your children’s education and essential expenses, clear any debts you had and even take care of your funeral expenses.
So what are you waiting for? Take out a plan now and start leading a life free of worries.
