With all the preparations that come with baby’s arrival, buying life insurance is probably not on your priority list. Maybe it should be?
The end of your pregnancy is nearing and you are excited for your baby’s arrival. You are prepared for the delivery, the nursery is decorated and your bag is packed. Daydreaming about what life will be like with your new son/daughter is happening more frequently. You lay on the couch, flip on the t.v. and see images of children that make you cry. Instinctively you reach down and gently rub your belly, you feel your baby stir inside you. Instant relief. However, the “what if’s” creep up in your mind and you begin thinking about your child and the future…Are you prepared for the “just in case?”
Baby’s arrival tends to shift perspective from individuals to the new family unit.
Expectant parents spend a good deal of time and energy preparing for their baby’s arrival. This usually means that the planning for the future preparation tends to get pushed to the side. This is where Brett Overstreet, Agent with State Farm can help put parents minds at ease. I had the great pleasure of interviewing Brett and offering different scenarios to share how he can help your family.
Brett: “Thanks Colleen. No one likes to consider these things – but what would happen to your family, your loved ones who depend on you, if something happened to you tomorrow? We believe life coverage is important, not because we will die – but because the people we love are going to live. That’s why we specialize in local and personalized family life insurance plans to make sure your family is taken care of if something happened to you unexpectedly. No one is guaranteed tomorrow, but you can guarantee the financial security of your loved ones even if you aren’t around to see it happen. That’s the conversation we want to have with you – What do YOU want for your family? We ask, because we care. That’s one of the many reasons why State Farm ranks highest in Life Insurance Customer Satisfaction for the 3rd consecutive year” (http://www.jdpower.com/press-releases/jd-power-2016-us-life-insurance-study).
Colleen: Brett, if parents already have life insurance, is it easy to add their child? When do you recommend adding them? Is it expensive?
Brett: Great question. There are several ways to go about this. Depending on what type of policy the parent has, you could consider adding a child rider to the policy which provides a small amount on life insurance for them and gives them the option to purchase more life insurance when they turn certain ages. You can also purchase a small policy on the child that has an additional benefit of growing a cash value account within the policy. This can be accessed in the future by you or your child to buy their first car, pay for a wedding, college etc. This could as inexpensive as $20 per month.
But here is the more important part. By getting small policy on your child when they are born, you are able to guarantee their insurability as they grow older. It is not uncommon for parents to find out that their kids have a disease or health complications as they get older – often times these things would prevent them from ever getting life insurance. Buying them a policy when they are young not only puts something in place early, but we can set it up to allow them to purchase more as they get older without ever having to prove their insurability. They will thank you years later when they are trying to qualify for life insurance to protect their children.
Colleen: Do you recommend increasing our current life insurance once the baby arrives? What is a good way to figure out how much life insurance to have?
Brett: I would say, this depends. This is why it’s important to work with someone local, who you trust, so they can make sure your life coverage changes as your needs change. With that said, anytime you have a major life event like having a child, I would say it’s a very critical time to review your life insurance plan. Your life insurance is meant to accomplish something for your family, make sure it adjusts as those needs change so they aren’t stuck in a difficult situation.
Colleen: We are moving out of our apartment into a home, can we get home owners insurance through you?
Brett: Yes. In fact, I’d highly recommend sitting down with someone like myself when you purchase a home. This is likely the biggest physical asset you have and you want to make sure it is protected properly. We do a full review of the policy and explain why our home owners contracts offer much more comprehensive coverage than any other company out there. State Farm has been the #1 home insurance company in the nation since (1964). Why? Because our policies pay out the most when something goes wrong. Trust me, don’t just accept a policy from a company because the quote looks the same and the price is better… make sure you know how the contract works! Bundling home and auto together with State Farm also saves you hundreds of dollars on your home insurance policy.
Colleen: I know you provide car insurance, but can you help me out with a car loan too?
Brett: Yes! Not many people know this, but State Farm is a bank. We offer vehicle loans and vehicle refinancing. Our interest rates are extremely competitive and you are able to have everything under one roof. One major feature is State Farms Payoff Protector. We include this on our loans for free. It is similar to GAP insurance (which you PAY FOR when you purchase a car at the dealership and the lists of contingencies for it to work are outrageous). If you paid for GAP insurance, often times we are able to get you a refund on that money when you refinance with State Farm. We also do loans for Motorhomes, ATV’s, motorcycles and other vehicles.
By the way, our application process is free and fast… and we won’t try and pitch you a bunch of extras like the dealership will.
Colleen: I have health insurance with my job that will cover the baby and I. Can you help at all with health insurance for my husband?
Brett: With everything going on in the health marketplace, currently we only have certain medical supplement products. We do have some great options for young kids who seem to end up in the ER a lot!
Colleen: Do you by any chance provide banking services so I can do everything straight through you?
Brett: You bet! State Farm does not have any Brick & mortar banking locations, but everything is online now and we have an awesome mobile app. You can open up a checking, savings or even apply for a credit in my office. One of the coolest things about State Farm Bank is their ATM process. You won’t find any State Farm ATMs around town, because you can use any ATM. ATM fees will are refunded at the end of your billing cycle if your paychecks are direct deposited into your checking account. No more driving around to find the correct ATM. Another area we focus on is with students. We have a student Visa credit card that helps them begin to build their credit in a safe and positive way. Our goal is to help them strategize and not misuse the card. This can help set them up for more financial success in the future.
Colleen: What is important to know about an insurance agent before you hire them?
Brett: Insurance is all about protecting what and who you care about, so there needs to be some level of trust between you and your agent. With that said, over time your insurance needs will change and so will the insurance industry! You want someone who is willing to sit down with you every so often and explain why these changes are happening or offer solutions if there is ever a problem. My office offers to meet with our clients every few years to review things and make sure your insurance plan is keeping up with the rest of your life. I truly believe it is irresponsible for your insurance agent to play a role in protecting you and your family without knowing a little bit about you – or at least being willing to meet with you. If your agent isn’t offering to meet with you, there is a problem.
We are a little old school because we prefer to do business face to face in order to build that trust. We are there when the worst thing happens.
Call Brett and schedule a time to meet
Brett is a great guy and a knowledgeable agent. Life insurance is very affordable and you can protect your income should anything happen to either parent.
“Brett has been with State Farm for just under 5 years. His licensed staff is located at River and Campbell, directly across from the El Coral Steakhouse. They focus on providing personalized insurance plans and work with you directly to make sure you are properly protecting the things you love. They have 24-hour customer service for their clients. Along with life insurance, they also provide, home, auto, renters, and commercial insurance in addition to financial services, such as banking. If you have never sat down and reviewed your insurance plan with someone, Brett and his team want to meet with you. You can reach his office at 520-395-2289 to schedule a free review appointment.”