Life insurance can be an important protection tool for new parents for several reasons.
Family financial coverage
In case of unexpected passing of one of the parents, the amount of coverage can help the remaining spouse or children cope with financial obligations such as mortgage, education, daily expenses, etc.
Securing children’s future
Life insurance can help secure your children's future by paying for their education or other important needs, even if the parent can no longer provide for them financially.
Income replacement
If one parent is the primary source of income for the family, life insurance can help replace lost income and provide for the family financially after their passing.
There are two main types of life insurance: term life insurance and whole life insurance. For new parents, life insurance is often the most suitable option as it provides coverage for a certain period of time at a more affordable price. Besides, such policies may include an option where the family receives income if the insured is unable to work.
Source: https://www.nerdwallet.com/article/insurance/a-new-parents-guide-to-life-insurance
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