The Money Move New Parents May Be Overlooking

When you have a baby, your world changes instantly. Each day is filled with discoveries as you nurture and care for someone entirely new. Between adjusting to new rhythms and responsibilities, it can feel like there’s always something to figure out.

New parents face a long list of decisions, from feeding and swaddling to sleep training, but there’s a timely one you don’t want to skip: deciding on the purchase of life insurance. It may not feel top of mind, but considering life insurance can be a great first step in helping protect your family’s financial future.

When should you consider life insurance?

Financial decisions are personal, and everyone has unique needs and goals to consider. If others depend on you financially, it’s worth taking the time to explore your life insurance options. Many Canadians start looking at life insurance policies when they hit a major milestone, like getting married, buying a house or having children. Simply put, if you contribute to your family’s financial well-being, life insurance could be an important part of your financial plan.

The benefits of purchasing life insurance sooner

Whether you’re a parent or not, the optimal time to consider purchasing a life insurance policy is sooner rather than later. Generally speaking, the younger you are when you apply for life insurance, the lower your premiums will be. Plus, you’re less likely to require a medical exam with your insurance application. Getting older increases the risk of passing away, and premiums are higher to account for this.

Financial planning for new parents

If you recently welcomed a baby or are thinking about building a family, life insurance can help provide a financial safety net. The tax-free lump sum (also known as a death benefit) could be used to help replace lost income, pay down or pay off a mortgage, fund your child’s education and/or maintain your family’s lifestyle after your death.

“While thinking about no longer being there for your family can be uncomfortable, it’s an important conversation to have,” says Anthony Ricci, associate vice president, life, health and credit protection at TD Insurance. “With life insurance, you can help provide your family with financial protection and reassurance that their needs are supported if the unexpected happens.”

Exploring term life insurance

There are two main kinds of life insurance to choose from: permanent life and term. Permanent life insurance (including whole, universal or term-100 life insurance) does not expire, so as long as your premiums are paid, the policy remains active for as long as you live. Term life insurance expires at the age stipulated in the contract, so the policy is valid for a specific period of time. While permanent life insurance policies have benefits that may appeal to some families, term life insurance policies are generally more affordable. These lower monthly payments can be easier to work into a budget. Plus, term life insurance is flexible. If your needs change over time, it can be converted to a permanent life policy later.

TD Insurance offers a new 30-year term life insurance option with fixed premiums for the entire term and instant approval for up to $1 million of coverage for applicants under 50. That means your premiums are fixed and won’t increase unexpectedly during the duration of the policy’s term. Upon renewal, the premium will increase to reflect the age of the insured person at that time. In the event of your death, your beneficiaries will receive a lump sum, tax-free payment to use as needed. This could be a way to help provide your family with financial support when they need it most.

Now is the time

Whether you have a new baby, are chasing a toddler around the house or raising school-aged children, life with kids never slows down. Putting the right life insurance policy in place now can help you protect what matters most and feel more confident about your family’s long-term financial security.

Visit tdinsurance.com to explore term life insurance options, speak with a licensed TD Insurance advisor and get a personalized quote.