Term Life Insurance 101 for New Parents

father and little baby, our guide to term life insurance for new parents

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Getting term life insurance as a new parent is a smart way to ensure your growing family is protected no matter what life brings. Even better, term life insurance is one of the most affordable types of life insurance available today. With rates as low as $20 a month, your loved ones gain financial protection and you can gain peace of mind knowing your family is prepared for the unexpected.

What is term life insurance?

Term life insurance is a type of life insurance with the main perk being that you get to choose how long you want your coverage to last. Options range from ten to 30 years, and you can dial in the exact amount of time you want your term to last. Once the policy is “in force,” you start paying monthly or annual premiums. If your premiums are paid on time, your family would receive a payout if something happened to you during this time.

All policies cover death, but you can get additional coverage to provide a benefit in the event you are diagnosed with a critical illness or face a disability. Once your policy’s term is up, you can simply part ways with the insurance company. If you’d like additional guarantees, you could add a return of premium rider to your policy. This rider can refund all the payments you made towards your policy if you reach the end of the term without needing to access the funds.

Why term life is great for young families
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Pay less than $20/month

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Choose your coverage and term

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Grows with your family

Get the option of “laddering”

This insurance is a best fit for young individuals and new parents because it’s affordable, customizable, and it can grow with your family. Since you can select how long you need coverage, you can structure your life insurance to specifically meet your goals. Whether you want to be insured until your children are no longer financially dependent on you, cover a new business, or simply get affordable life insurance for your family, term life adjusts to your life. You also have the option of “laddering” term life policies to cover different terms, which could help you get affordable rates while securing coverage for a longer time period.
Wondering if you need insurance?

Almost everyone can benefit from having life insurance, but we recommend asking yourself a few questions to determine if you need coverage:

  • Do you have anyone who is financially dependent on you? 
  • Would you leave behind any debts if you passed away unexpectedly? 
  • Do you own a small business?

In all of these situations, someone else would be affected by your passing. If you want to ensure they would be able to go on living life, having a life insurance policy in place can give you that security.

How does term life benefit young families?
For new families, the biggest benefit of term life is its affordability. Premiums generally remain the same throughout the life of the policy, so for families with a tight budget, this insurance provides a predictable and reliable structured plan. Another advantage of term life is the death benefit, which is paid tax-free to your chosen beneficiary (the person you designate to receive and manage the money received if you pass away). They can use this money to cover remaining mortgage payments, pay medical bills, and cover any daily living costs so your family doesn’t have to face a financial burden during an already difficult time of grief. These funds could even be used later in life to cover your child’s college education.
How much does term life cost?

Your premium is based on your health and age at the time you fill out our simple ten-minute online application for term life insurance. This rate can also increase or decrease based on the term length you choose, as well as with any riders you add on to your policy.

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Generally, young and healthy individuals can secure rates as low as $20 a month. To learn more about a personalized premium, you can always chat with one of our licensed insurance agents. They can help you find a plan based on your budget and customize coverage to fit the term length you need.

Get term life insurance today in a few simple steps

If you’re ready to get coverage, get started on our application for term life insurance today. And if you have any questions along the way, a licensed insurance agent is only a click away. We’re always here to help you find the best insurance plan for your life.

Let’s Get Started

If you are ready to get coverage now, our online application takes less than ten minutes.

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Calie Brummer
Head of Digital Communications
Calie Brummer is a staff writer and Head of Digital Communications at Quility Insurance with a focus on financial well-being and life insurance solutions.