I we are expecting our first child come May, any ideas about the most suitable life insurance for us?

Question

I have found it all very confusing the various types and conditions, basically we want financial cover for our child firstly, how does it work is it just a matter how much you put in you get out, would appreciate your input.

Answer 1

Just buy a simple life policy and do not be swayed into buying anything more complex. DO NOT buy an endowment or similarly charged investment policy. A life policy just guarantees to pay out a lump some on death and lesser sums for major injuries. The amount it pays out depends on the premium you pay. However, you normally need to state the amount of cover you require for any application as a couple you should go for joint cover

Answer 2

The cheapest and most straight forward type of cover would be Term Assurance.  This type of cover pays out the sum assured during the period of cover in the event of death.  The term of the policy should be until your child reaches age 18, 21 or 25 depending whether you want to give them support for university, etc.

The sum assured can be paid out as a lump sum or as a monthly or annual benefit and you should decide which of these suit you best.  Generally the monthly benefit is the easiest as it means there is an income coming in to support the child.  This is known as Family Income Benefit.

When choosing how much cover to have you can either work out how much you think the remaining partner will need to be able to support the child or if this amount is not affordbale to you go for as close to it as you can manage.  Having some cover is better than none.  

You should also include the option of having the monthly amount increase in line with the Retial Prices Index as this will stop the monthly amount decreasing with inflation.

I hope htis helps but if you need anything further please let me know.

Answer 3

I always had TERM life insurance while my children were in school and I was having to support them.

Term is cheaper than whole life, and you can get more coverage than thru whole life....

When the children got out on their own I bought whole life.

State Farm has a great plan for people like you but do not let them sell you too much, they will try.  Only buy what you can afford....you will be surprised how much better you feel mentally when you know

if you died your child could have money..

..

remember 50,000 sounds like a lot of coverage...

but...

how many years income is that for you?

Answer 4

I'm not too sure about the type of policy you both need but i think its great to see parents being responsible for there children in this way, not enough people do it.

Answer 5

Lady, find the oldest telephone book you can find.  Open it to INSURANCE.  Seek out the listings of the Chartered Life Underwriter (CLU) designated people.

That person, listed in an old phone book, has experience.

You are asking, here, for a cookie-cutter solution.  These answers rarely fit for all.

Go to my site, www.EndlessLegacy.US

There you will find a form to fill out.  Take it to a local CLU.  The answers on the form will allow the CLU to provide you with a specific, personalized answer.

Answer 6

The previous people did not answer your question. I would be happy to explain and answer any question that you might have about life insurance, or investing for your family. Give me a call at 773-655-4635, or [e-mail]

Answer 7

I believe you are young couple. Since I am an Insurance agent, I suggest you to go for long term investment polices with little bit aggressive mode in investment(75% in Equity Maket and 25% in Debt Market) along with good life coverage and any time withdrawal option after 3 to 5 years so that  if you need  your money, it would not be stucked for long term.

       Take care about allocation, administrative and fund management charges and company's fund performance.

Answer 8

Level Term Assurance is most suitable and then choose if you want it on first death or second death basis. If you have a budget in mind, tell your financial adviser before they research, that way you will be able to see what benefit you can get for your monthly budget and see if you want to play around with the figures on that basis. Hope that helps. Best thing is to ask specifically for a Level Term Assurance on a Joint Life Basis. That way you wont be confused with all the other stuff you might be sold.