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Parental Life Insurance

Parental Life Insurance

Nothing can prepare you for the overwhelming emotion you will feel when you see and hold your child for the first time. It is a very special moment and, from that day, will undoubtedly do anything to protect your child throughout his life. From caring for it through illness to supporting it financially over the years.

Parental Life Insurance

But one thing that many parents chose to ignore is what would happen to their family if they were no longer present to offer this support. As a parent, senior parents life insurance is a worthwhile investment and the arrival of a child is usually the trigger point for life insurance to be classified.

So, what is life insurance?

Life insurance is a policy that guarantees that your child, and any other person who depends on your income, receives financial coverage in case you die or can not work for a prolonged period of time.

Parental Life Insurance

The parental life insurance policy helps cover the cost of living expenses, such as food, utility bills and education, plus any debt, including your mortgage.

You can also pay a lump sum in case of your death or if you are diagnosed with a terminal illness.

Your policy will be based on a fixed term, say 25 years, and this usually ends when your children are financially independent or for others when the term of your mortgage ends.

How much?

The amount of coverage you retire will depend on your individual circumstances, such as your income and the cost of monthly / annual expenses. If your circumstances change during the term of your parental life insurance policy, your level of coverage should be reviewed, for example, if you move to a larger home with a larger mortgage or if you expand your family. In both cases, the value of your policy should be increased.

The cost of your life insurance policy depends on a number of factors that include:

The duration of the term (for example, 15/20 years): the longer the term, the more expensive the monthly premium will be
The size of the sum you choose to ensure
Your age and health: the younger and healthier you are, the cheaper the monthly premium will be
That said, it is important to get the right amount of coverage and provide honest and accurate information when you withdraw the policy. It does not make sense to withdraw and pay for a policy year by year that runs the risk of being voided because you provide false information at the beginning of the policy, such as an incorrect age or not admitting that you smoke. Life insurance policies pay large amounts of money and, therefore, are carefully evaluated before making any payment.

Different types of life insurance.

There are a variety of life insurance policies available designed to cover different aspects of your life. These are some of the most common policies:

Mortgage life insurance designed to cover the cost of your mortgage
Critical illness coverage will pay a lump sum if you had to suffer a serious illness
The income protection parental life insurance coverage replaces your income in the event of a serious disability illness that prevents you from working.  With your growing family, getting life insurance at is an important purchase to consider.