From first steps to graduation walks, there are many moments for a young family to enjoy. But living in the moment can be difficult if you’re unsure how your loved ones would manage if you weren’t around to provide an income. Fortunately, life insurance is an affordable way to address these worries and give your household a financial safety net if you were to pass away. If you’re a young parent looking to protect your family from the unexpected, here are four life insurance tips to keep in mind. 

How Young Families Can Get the Most Out of Life Insurance

1. Don’t Wait

Accidents can happen at any time, no matter what your age. As such, you shouldn’t put off life insurance coverage until you get older. In addition to gaining early peace of mind, starting your policy when you’re younger and healthier can allow you to lock in lower rates than if you waited. 

2. Calculate a Practical Coverage Amount

Keeping your coverage amount low can help you save on premium costs. However, you should still select a benefit that’s enough to cover debts and future expenses that your family couldn’t cover without your income. Generally, coverage amounts fall between six and 10 times the amount of the policyholder’s annual salary. 

3. Compare Policy Types

Term life policies are designed only to last a certain amount of time—such as 10 or 20 years. Once this period is over, the coverage no longer applies. This option may be ideal for those who won’t want coverage once the kids grow up and major expenses—such as mortgage and tuition payments—aren’t a burden. 

By comparison, whole life policies cost more than term. However, they provide permanent coverage. Since the premium stays the same throughout the life of the policy, it can be advantageous to start this policy when you’re younger and qualify for a lower rate. 

4. Cover Both Parents 

When starting life insurance policies, young parents will often make the mistake of covering the primary breadwinner. But in these situations, no payout will be provided if the non-covered parent passes away. This can leave the surviving spouse and children with unforeseen expenses that are still hard to cover with one salary—such as funeral and childcare costs. To avoid unfeasible financial obligations after the death of either parent, list both on the policy.

When you want first-rate protection that’s easy on the wallet, discuss your policy options with Fred Haight Insurance Agency. Serving clients in Muir, MI, this independent agency will explore various life insurance plans from different carriers with you so that you can choose the best one for your budget and coverage needs. This team can also optimize your home and auto insurance plans to help you have greater peace of mind and save even more money. Visit this agency online for more details on their coverage options, or call (989) 855-3341 to request a personalized insurance quote.