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Types of Life Insurance for New Parents

As a new parent, your time is quickly filled with feedings, diaper changes and most importantly cuddles from the world’s cutest baby. So, while there are many types of life insurance, you can save time by narrowing in on the two main ones: term or whole life insurance.

Term Life Insurance is protection that expires after a set period of time (i.e. your “term”). It’s ideal for those who have greater coverage needs that may diminish over time.

If you have a newborn and a mortgage, for example, you might need more coverage now than you will once your child graduates from college and your mortgage is paid off. It’s also one of the most affordable ways to protect your family.

Unlike term life insurance, Whole Life Insurance is protection that lasts for life. As long as you pay your premiums, you can keep the policy and pay the same amount for it for up to a lifetime. It also comes with the added bonus of “cash value,” which is money that gets set aside each time you make a payment.

Left alone, that money will continue to grow, like a nest egg for the future. If you name your child as a beneficiary, he or she can use that money toward a number of things, such as college tuition, the down payment on a home, or seed money for a business venture.

So if you’re looking for cash value that can grow alongside your child, whole life insurance is a good option to consider.

Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.