Raising a child can be one of the most rewarding experiences but also a very expensive experience. It’s difficult to think about but if you passed away, would your spouse have the means to provide for your family long term? All families need life insurance regardless if you are the breadwinner or not. Even if your spouse is a stay-at-home parent, they still provide valuable services because it would be very expensive to hire outside help for all of the tasks that are involved with raising a child. Single parents also need life insurance because they need to cover their children’s needs long term.

There are three main questions that parents find asking themselves in order to find the best policy.

1. What type of life insurance is right?

There are two basic forms of life insurance. The first is term life insurance and the second is permanent life insurance. Generally, term insurance offers the best coverage for the lowest initial premium. Term life insurance is a perfect choice for people with temporary needs or a very limited budget. It may also benefit those who can anticipate a need for lifelong protection with the option of building tax-deferred cash values.

2. How much life insurance do I need?

First, you need to evaluate your family’s needs and organize all of your personal financial information. It’s important to estimate what your family would need in order to meet their current, and also future financial obligations. The amount you need depends on your unique circumstances, there is not one simple formula to determine the amount you need. A good rule is to purchase a life insurance policy that covers at least 10 times your gross annual income.

3. How long do I need to have life insurance?

The right term length of your policy varies based on a few factors. You need to consider how many remaining years you have to pay off your mortgage, when do you predict your children will be financially dependent, and how much longer you are planning to work before you have a comfortable retirement.

Overall, when you are planning to purchase life insurance it’s essential to find a professional that you trust and who can explain each policy option objectively. We are here to help you determine what kind of life insurance is best for you. With a few simple questions we can work to find you the best value for your lifestyle, budget, and overall needs.

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About Sam Goldsmith

With over fifteen years experience in Finance and Insurance, Sam Goldsmith brings a wealth of keen judgment, knowledge and understanding to his profession. As the Principal broker of Goldsmith Insurance Agency, based out of Denver, Colorado, he is responsible for the sales and management of the organization specializing in Life Insurance, Disability Insurance, Annuities, and Pension Planning. Licensed in over 45 states has helped Sam grow his business exponentially. Since starting our website in 2007 Sam has helped placed over 800 policies into force, well over six hundred thousand dollars in annual premium.