A recent study shows that while women place high importance on planning for retirement and their family’s future, they face challenges that prevent them from reaching their financial goals, including not having enough time for planning and feeling less educated in regard to retirement and personal financial planning.
As more women climb the corporate ladder and have children, many are becoming interested in further educating themselves about their financial well being. In addition, married millennial women who are the primary financial decision-makers say they take on this role because they are more knowledgeable than their partners (66%) or because they enjoy making financial decisions (49%).
Here are a few important factors to consider when choosing a life insurance policy that best fits the needs of you and your family:
How Moms Can Calculate How Much Insurance They Need
It’s important to not over or underestimate the amount you may need. A basic needs calculator can help you do the math. You can use the DIME method—Debt, Income, Mortgage, and Education—to calculate your expenses to get a ballpark number.
As your child grows, so will the expenses they bring. It can cost up to $233k to raise a child (and that’s before college). It’s becoming more common for adult children to live with their parents into their early 20s as they establish themselves. Their financial needs such as student loans, rent, and living expenses should be taken into consideration when you’re thinking about how much coverage you actually need.
Being a new mom can be overwhelming. From the new routine—sleep, feed, repeat—to balancing all the other important chores and demands of pre-baby life. Something that shouldn’t be hard or stressful is ensuring that the family is set up for a healthy financial future. As a new mom (and even if you are an older parent who hasn‘t yet considered it) you should consider learning about the importance of life insurance. Owning a life insurance policy can protect your family during the years they need you most.