Living in Orange County, California is incredibly expensive for families which is why life insurance is crucial to purchase now versus later.
Everything changes when you become a parent, most of which we can't control.
One thing you can do and should do is purchase life insurance. It can be really affordable.
You should categorize life insurance in a similar fashion as automobile insurance.
Like auto insurance, life insurance protects us financially when a terrible event occurs.
When purchasing auto insurance, there's one goal in mind, buying the best coverage at the cheapest rate.
Once we've purchased the policy, we tend to set it and forget it, until the policy expires.
The same goes for Life Insurance.
A Parent's Lifestyle
If or when we become new parents, typically we want to provide the best environment for our little ones, lifestyle included.
In order to maintain that lifestyle after a loved one dies, one must have a life insurance policy to protect it.
Bills and mortgages don't just go away when a spouse passes away.
Typical Large Bills
You either put a plan in place ahead of time, or you adjust to the circumstances when the incident happens.
If you want your child to grow up in the same home even after death, life insurance is the perfect vehicle to have in place.
Don't leave your spouse with unpaid debt.
Term Life Insurance
Term Insurance is the cheapest route to go if purchasing life insurance, and it's pretty easy to understand.
Basically, you figure out the amount of money you want to leave to your loved ones.
Decide on the number of years (term) you want to be covered.
Then you shop for life insurance quotes similar to shopping for automobile insurance.
Pick the term with the cheapest quotes at the highest-rated company.
You then apply either online for the policy to start the underwriting process.
In most cases, a technician will come to you, check your height and weight, and a urine test. It's an easy 15-minute visit.
Insurance companies will also check your medical and prescription drug history.
Based on the underwriting results will determine if you've been approved or declined, and what your premiums will be.
Once you're approved, you'll pay that fixed amount for the remainder of the term.
Life Insurance Tips for Cheaper Premiums
The younger you are, the better. Premiums only go up as you age. Don't wait.
Get healthy. The fewer health problems, the cheaper your premiums will be.
Stay lean. With life insurance policies, your height and weight can determine how much you'll pay for the term. Typically there is a height/weight chart affiliated with the policy. Find out what the weight requirements before you apply then try to lose some weight before applying.
Females tend to have lower premiums than males.
Don't smoke. Smokers have ratings all to themselves which means higher premiums.
Don't do any illegal drugs including marijuana in legalized states.
Go long term. It's best to choose a 20-year term if you're a new parent. A 20-year term will protect your spouse and/or child until they turn at least 20 years old.
Don't apply unless you know you can get approved. If you get declined, most insurance companies won't allow you to apply for around 2 years.
Don't lie on your application.
Find out the underwriting requirements before you apply. The brochures or guides typically tell you upfront.
Finally, tell someone you trust about the policy. Unfortunately, life insurance companies won't exactly payout the death benefit unless it's requested. If no one knows about it, the policy may not be paid out to the beneficiary.