Here at Kale Insurance, serving the greater Lincoln, NC area, we recommend increasing the amount of your life insurance policy after the birth of each new child in your home. This is a standard recommendation made by most insurance companies. However, many people wonder why it is recommended that they increase their life insurance policy amount after the birth of each new child. Here are a few of the reasons why.
Your Household Expenses Increase With Every New Child
One of the reasons why your life insurance policy should increase after the birth of a new child is because your household expenses increase when a new child is added to your family. Another person living in your home causes your water and power bills to increase. You also have to feed and clothe this new child. As such, your household expenses increase. If you were to pass away, these expenses would be passed on to your spouse. If your life insurance policy didn’t increase after the birth, there might not be enough money to provide for all of the members of your household comfortably.
Your Future Expenses Increase With the Birth of a New Child
The second reason why your life insurance policy should increase after the birth of a child is that your future expenses may now be higher thanks to the new child. Do you plan on sending your children to college or paying for their weddings? If you haven’t increased your policy limits after each birth, there may not be enough money to provide for these events in the future if you pass away. As such, increasing the limits is important, so your kids have everything you dream of providing for them, even if you pass away.
If you have recently added a new child to your household, but have yet to increase your life insurance amount, now is the perfect time to do so. Contact Kale Insurance, serving the greater Lincoln, NC area today and let us help you determine what amount of insurance you need. Reach out to our agents for more information.