5 Questions Mothers Have About Life Insurance And How To Make The Best Choice
Mama’s unite! ✊🏿✊🏾✊🏽✊🏼✊🏻
If you are expecting a baby, you are already planning for the future of your family. And part of this plan should include life insurance (especially as a mother). Evaluating your insurance needs and getting the best insurance helps protect your growing family’s financial stability.
If this is your first time looking for coverage, you likely have questions.
In this post, we will address 5 common questions mothers ask us about life insurance.
1. What type of life insurance coverage is best for me?
Which is better? Term or permanent? Before deciding what kind of coverage you need, you should first calculate the benefits you need to protect your family. You can do that online, using one of the free calculators on the websites of insurance providers or by chatting with one of us on our support chat here.
- Term life insurance normally costs less and that can be a benefit since welcoming a new member to your family may already put some strain on your finances. It is affordable for young mothers that may not have a lot of disposable income, but need the coverage.
- Permanent insurance provides lifelong coverage and a cash accumulation feature.
A combination of term and permanent insurance is another possibility. You can use the term policy for the extra coverage during the first years of your child and transfer it to the permanent policy later.
2. What is the best life insurance coverage for me as a stay-at-home mum?
Both working and stay-at-home mums need a policy for the protection it brings to their families. A stay-at-home mum might not get paid for her work, but if something were to happen to her, her family would struggle to hire someone to do all the things she does.
A study from salary.com in 2019 determined stay-at-home mums clock an average of 94 hours a week, and make around £132, 572 GBP salary a year (talk about being a boss lady! 🔥). She is a dietician, chef, housekeeper, and therapist. Childcare alone would cost at least £26,000 per year.
For this reason alone, all mothers need insurance coverage that factor in replacing everything they do, paid, and unpaid work.
3. Is company life insurance coverage enough for me as a working mum?
Group insurance that companies typically provide is a great benefit to have, but it’s also limited. The coverage is a lump sum or, it may even be one to two times your salary. However, after the calculations, you will see that the money won’t last long.
Another thing to keep in mind is that when you leave your job, you lose that coverage. Group coverage offered through an employer is not a proper insurance plan. An individual policy that you own, on the other hand, offers an extra layer of protection.
4. Are there any policy restrictions if I’m expecting?
Getting a policy early on in your pregnancy is best, as you can discuss pre-existing conditions and options for coverage. If you’re farther along and you start experiencing medical issues, it may be difficult to obtain insurance with regular insurers. Some companies might even force you to wait until after your child is born. That’s why it is best to get the coverage as soon as you learn you are pregnant if you don’t already have any.
5. How much should I pay for life insurance?
The premiums for insurance are based on a number of things, but most importantly age and health. The amount depends on the type of policy, your lifestyle, medical history, and your dependents, but can start as low as £8 a month.
Have more questions? We would love to help you navigate the insurance landscape. You can find us online and sign up for our waitlist, or ask a question in our chat. We want to help protect you and your family and believe you can find peace of mind with us.
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