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Family Plan: Yours, Mine, or Ours?

Financial Wellness

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3 min Category: Financial Wellness

In life, when deciding on major milestones, having a plan is key. A plan allows you to not only stay on track with your goals, but helps you achieve them as well. When thinking of starting a family, the same applies. However, this now becomes a joint plan between you and your partner.

Two of the most significant factors of this planning process are work and finances. Are you also planning to buy a house or a car? What is the status of your savings and investments? How much do you spend on recreation, travel, hobbies, vacations, and going out as a couple? Some of these fit into short or medium-term goals, while others need a bit more time. While you and your partner may not always want the same things, you will have to agree on common ground when it comes to the groundwork of starting a family.

Life Insurance Can Be One of Your Best Decisions When Planning a Family.

We often tend to not consider life insurance as a priority, instead we think everything will be fine with our health. However, we seldom realize that life is unpredictable, and today’s reality can change in a snap.

You know perfectly well that imagining what would happen to your loved ones if one day you were missing is not easy. But perhaps it can give you peace of mind to think that planning your future and that of your family’s, more than anything, is a gesture of love.

The future success of this plan and your family also depends on ensuring your safety over the years. There can be many reasons for having a life insurance policy, but of course, children can be one of the most important of all when it comes to family planning.

Are the Parents-to-Be Expecting a Girl or a Boy?

It doesn’t matter if popping the balloon reveals pink or blue confetti; what matters is the baby’s future. No one wants to consider something going wrong, but if it does, it’s best to have fully thought through your options in advance.

Having and raising children is one of the most beautiful experiences in life. Taking them by the hand and giving them the tools to become decent adults is a responsibility that all parents take very seriously. That is why it is necessary to ponder, with the same seriousness, what would happen if one day you are not there? Have you thought of all the economic effort it takes to support a child into adulthood? Life insurance can give you the relief of knowing that, in the event of death, your family will have the financial safety net they need to move on.

You or Your Spouse, That is the Question.

At WAEPA, there are some scenarios where coverage can best support your needs. For example, if you and your spouse don’t have children as dependents on your policy or if you’re younger than your spouse, you have two options for spousal coverage – dependent coverage or an Associate Membership. Becoming an Associate Member is a smart option for you and your spouse if you are looking for higher coverage amounts and benefits than dependent coverage offers. Find more information about becoming an Associate Member

In addition, there may be some tax benefits to the ownership, primarily related to flexibility and control. The biggest drawback is estate tax risk, but before making any moves, be sure to talk to your financial advisor first.

How Much Does Life Insurance Cost?

Foremost, we all agree that purchasing life insurance is the right decision when you have a significant other, children, or family members to protect financially. The next step is to think about the type of coverage that would best suit you.

Term Life Insurance vs. Whole Life Insurance.

Term life insurance offers temporary protection with coverage for a specific period of time. These policies are typically cheaper and last 10 to 30 years, and offer add-ons to customize your coverage. There is usually a maximum age above which coverage will not be offered or cannot be renewed. Learn more about WAEPA’s Group Term Life Insurance and rates.

Whole Life / Permanent life insurance provides lifelong coverage. It’s more expensive than term life but can last for the duration of your life while building cash value. Whole life offers a fixed death benefit with the cash value component growing at a guaranteed rate of return. Many Whole life insurance policies pay out dividends that can be used to reduce premium payments or can add to your cash value.

Short-Term Disability Insurance: Another Option to Keep on Your List.

What would happen if you had a temporary illness or injury that kept you out of work? WAEPA’s Group Short-term Disability Insurance will cover your paycheck for up to six months. It offers benefits up to $6,500 a month, which can help replace your income while recovering from a short-term disability. This valuable protection is reserved for Civilian Federal Employees between the ages of 18 and 65 who are actively working at least 30 hours a week. This can be viewed as a supplemental income that will help support you and your family. Learn more about WAEPA’s Group Short-Term Disability Insurance and rates.

As you can see, being a couple means sharing responsibilities, but at no time does it mean disregarding your personal dreams. It means making choices together and creating a plan that satisfies both of you. Setting out your goals and the steps to achieve them will help you work together, securing the protection, financial support, and peace of mind your family deserves.

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