New baby? Here's why you'll want to life insurance

Bringing a new baby into the world is an incredible moment filled with joy, excitement, and anticipation. However, along with happiness comes a profound sense of responsibility. 

As new or expecting parents, getting life insurance is one of the most crucial steps you can take to safeguard your family's future. 

Here's why life insurance for new parents is essential.  

Financial security for your family

Life insurance helps provide a safety net that ensures your family's financial stability in the event of an untimely death. 

For new parents, life insurance can help support their children even if they are not there to provide for them. Your plan can cover daily living expenses, future education costs, and even outstanding debt, such as a mortgage. 

Affordable premiums for young parents

One of the benefits of purchasing life insurance as a young parent is its affordability. Premiums are generally lower when you're younger.

By securing a policy early, you can lock in these lower rates for the long term, ensuring significant savings over the duration of your coverage.

Debt repayment

Many families in Canada have debts, including student loans, car loans, and mortgages. In the unfortunate event of a parent's death, these debts do not vanish. Instead, they can become a significant burden for the remaining family members.

Life insurance can help cover these debts, preventing financial hardship and potential loss of assets. It's crucial to adjust your coverage amount based on your debt load. If you have more debt, consider increasing your coverage.

Funding education

One of the most significant long-term expenses for parents is the cost of their children's education. Whether you plan to send your child to private school, fund their college or university tuition, or support their pursuit of advanced degrees, these costs can accumulate rapidly.

In Canada, three out of four individuals enroll in a post-secondary program after high school graduation. By securing life insurance, you can help ensure your child receives the education they need to thrive and succeed.

Estate planning and inheritance 

Life insurance can help play a crucial role in estate planning, offering a way to leave a legacy for your children and providing them with financial support. It also helps cover significant funeral expenses, sparing your family from this financial burden during a challenging time.

Incorporating life insurance into your estate planning ensures your family's financial security and honours your wishes, helping provide peace of mind for you and your loved ones.

Choosing the right policy

When considering life insurance coverage, you have several options. First, there's term life insurance, which provides coverage for a specific period—typically five, 10, or 20 years—depending on your needs. Alternatively, you can choose permanent life insurance. This option offers lifetime coverage and includes an investment component. It’s ideal for those who want ongoing protection and can afford higher premiums.

Help prepare for the new members of your family with CAA Protect. By investing in life insurance, you can focus on the good times and enjoy parenthood without worrying about what could happen if you aren't around anymore. 

Book an appointment today to speak with a CAA Protect advisor or call 1-800-709-5809.

Have a question? To speak to a professional who can guide you to the right coverage from the right insurer at the right price call us at 1-800-709-5809 or email us at info@caaprotect.ca