Congratulations on the new addition to your family! Parenting is a crazy, amazing experience. As a new parent, your life will never be the same — and neither will your insurance needs.

You’ll want to protect your little bundle of joy forever. This is why life insurance is so important for parents. It provides a financial safety net in case you’re no longer there to provide for your child. And even if you already have a life insurance policy, your needs change greatly once kids are in the picture.

Here are some things to consider and tips for purchasing life insurance as a new parent.

1. Consider permanent and term life insurance… and know the difference. There are two main categories of life insurance: permanent and term. Permanent life insurance offers lifelong coverage, while term life insurance provides coverage over a set time period. For parents, it may be wise to purchase a permanent policy and then add term insurance during your kids’ dependent years. This allows you to have a strong coverage foundation, plus some extra protection to ensure that your children will have what they need.

2. Think about education expenses. It may seem too soon to be thinking about education expenses for a child who can’t even walk yet, but it’s important to consider these costs when determining your life insurance policy. We all want our kids to have the best opportunities possible. Factoring education expenses into your life insurance can help ensure that they will have the same opportunities even if you aren’t around.

3. Stay-at-home parents need life insurance, too. Stay-at-home parents may not earn an income outside of the home, but consider what it would cost to replace everything that they do. The loss of a stay-at-home parent may mean that the surviving parent will now need to cover childcare and other expenses, which can rival the cost of college tuition. Purchasing life insurance for a stay-at-home parent can help cover these costs and relieve some of the financial burden on the surviving parent.

4. Don’t designate your minor child as your beneficiary. Yes, you’re buying the policy so your kids have financial protection, but it can be a big mistake to designate a minor as your beneficiary. A better option would be to set up a trust or designate an adult, like your spouse or a close relative, to oversee the distribution of money to the minor.

State regulations may limit if or how much a minor child can receive in life insurance proceeds, so they may have to wait to receive the life insurance benefits until the court appoints a guardian to administer the funds. This can take quite some time and typically requires multiple court dates.

5. Speak with an independent agent. An independent agent can help you find the best life insurance coverage, for the right price. Your agent can provide quotes from multiple carriers, discover discounts and work with you to determine your exact life insurance needs.

Get started today by taking the first step to protect your family’s future.

This article is for information purposes only. For specific coverage details, always refer to your policy.