7 Life Insurance Tips for New Families

If you just started a new family, making sure you have the right life insurance policy is one of the most important things you can do.

Here’s what you need to know about life insurance for new families.

1. Understand the Different Type

The most basic part of life insurance is understanding the available different types of coverage. The two main types of life insurance policies are whole life insurance and term life insurance.

2. Consider all the Expense

Before you decide how much life insurance you need, take all the potential expenses into account. If something happens to you, your loved ones will have to pay monthly bills, including mortgage, electric, and car payments.

3. Don’t Make a Minor Your Beneficiary

You might want to make one of your children your beneficiary, but that’s a bad idea if they’re still a minor. If you name a minor as your beneficiary, they won’t be able to collect the money from your life insurance policy until they’re either 18 or 21.

4. Create a Will

If you want to make sure your family is prepared if anything happens to you, take a moment to create a will online. Writing a will makes it easier for your loved ones to deal with your passing in a legal sense.

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