Are You Ready To Be A Parent?
Before you make that life-changing decision to become a parent, it's important to think about if you're really ready.
You may want one and it may be at a good time in your life, but how do you know if you're ready for a baby?
Many issues come up for consideration when contemplating parenthood – your age, financial situation, relationship status, career goals, educational ambitions and family size.
The cost of raising a child to the age of 21 has jumped to over £230,000, or more than the price of an average house in Britain, according to research published by LV. Parents will spend around £70,000 for babysitting alone! In total, the typical parent can expect to spend £231,843 raising a child born in 2016.
Can we afford to have a baby?
Based on these facts you may feel that you'll never have enough money to have a family. Some will say though that it is more important, that your baby receives love and attention rather than material goods.
However, this doesn't mean it’s not wise to save a little before you get pregnant. You'll be financially in charge for your child for at least 18 years, so try to put something aside.
It may seem premature, but you might also want to think about:
- taking out life insurance
- making a will
- saving for university fees.
Life insurance
Life insurance is an important consideration at this life stage. Paying mortgage costs, raising children and paying for everyday household expenses may be a real struggle for your loved ones if you’re no longer there to provide for them. Life insurance pays a cash sum to your family (or whoever you decide) if you die. Policies are designed to help families cope with the financial pressure of losing the household's main earner.
Some policies also offer Family Income Benefit which can provide a regular income as well as a single payment. There are different types of life cover, for different needs.
Having a regular income becomes particularly essential when a new addition to the family comes along. Income protection insurance replaces the income lost through your incapacity to work due to injury or sickness. Income protection or critical illness insurance is generally cheaper than most people think and in the majority of cases, some cover is better than none at all – after all, based on the facts, it seems we cannot expect the Government to replace our income if something does go wrong.
Becoming a parent is an exciting life milestone. For more information, why not speak to one of our advisors today? Call us on 0800 612 8005 because when considering insurance to protect your family, it is important you get the right policy for your needs and we could give you the advice you need to find the right policy for your circumstances.
