New Parents Buy Life Insurance

July 24th, 2014 by

There is no question that new parents buy life insurance. In fact, parents of new babies are one of the top segments of life insurance buyers.

Life insurance might not have been a priority in the past. But, that was before there was a newborn relying on them. Having a baby changes everything. Most new parents are awed by their new obligations. They take the responsibility of providing for that new baby very seriously.

Experts estimate the cost of a child between $260,000 (in today‘s dollars and excluding the cost of college) to $2.4 million, in the case of a child with disabilities.  Nerdwallet has a formula that new parents can use when they calculate the cost of raising a child. For example, housing and transportation gobble up the biggest slices of the budget among essential costs. Married couples with a child spend almost $80,000 more on housing than married couples with no kids, and almost $57,000 more on transportation, according to the Bureau of Labor Statistics. You might want to read their article for more details.

Protection

Young families need to protect themselves. It’s not a pretty topic but a necessary one. Let’s face it, if the primary wage earner dies unexpectedly, the surviving spouse will find it almost impossible to cover mortgage, auto loans, living expenses, miscellaneous debts and college expenses.

With life insurance, new parents know their family will be on solid financial ground. That might even help you sleep better at night — at least when the baby’s not up.

Both parents need life insurance

It’s not just the breadwinner who needs life insurance. Stay-at-home parents should have coverage too, even if they don’t earn income.

A stay-at-home parent provides valuable services, such as child care, that the surviving parent would have to pay to replace. A life insurance payout could also enable the surviving breadwinner to take a few years off work while the family regains footing.

Lifetime value

In the marketing world, we talk about lifetime value. Investing in a New Parents list can bring a huge ROI (return on investment) over the course of a lifetime. That’s why Insurance Agents who sell life insurance know that Parents of New Babies is a top performer.

Agents who contact new parents can develop a relationship that can last for decades.

Comment