Life Insurance
Life insurance is another long-term plan that many people wish to make when they become parents. When you buy life insurance, you pay a yearly premium. In exchange, upon your death, the company pays the face amount of your policy to your beneficiary. You can choose your spouse or child as a beneficiary, as well as other relatives.
There are many types of life insurance, including some that also function as investments. Some experts believe it makes more sense to invest money in secure investments rather than to buy life insurance. On the other hand, many people simply don't feel certain that their loved ones will be secure without life insurance; talk with your own financial advisor about what might be best for you. Many people choose a mix of life insurance and other investments.
When considering life insurance, be sure to get information on the face value as well as the cash value of the policy — two different things. Ask to see a net payment index that will clearly show the costs of the policy, as well as the surrender cost index.
It's not usually advisable for a woman to buy life insurance during pregnancy. (She's considered to be at higher risk of health problems, and thus the cost is higher.) But your partner can, and you can purchase insurance shortly after the birth if you have not purchased any prior to becoming pregnant.
