If you have young children, it is a smart financial move to invest in life insurance. Here are three things to keep in mind when choosing a life insurance policy as a parent of young children.

#1 Go For Extended Coverage

First you need to think about how long your spouse is going to need to provide for your children if you were to pass away. Your spouse is going to need to provide for them not just until they are eighteen, but most likely into their young adult years as well. It is common now for parents to assist their children with college expenses and with transitioning into adulthood. You want to make sure that your spouse can take care of your kids without you through their college graduation, which is why you need to go with a policy that will cover you.

You can choose a term-insurance policy that will cover you for a set period of time, for example, twenty years, and will pay out if you pass during that time. However, for the best coverage for your family, you can get a permanent life insurance policy, that will provide your family with coverage if you pass away in the next five years or in fifty years.

#2 Think About The Investment Potential

If you want to invest in protecting your family, think about the overall investment potential of your life insurance policy. When you choose a permanent or whole life insurance policy, you are not just banking on money for your family when you pass away, you are building up an emergency fund of money for your family right now. With whole life insurance policies, over time, part of your premium is invested and is accessible to you to use, without taxes, if you ever need an emergency fund. A whole life insurance policy can take care of your family in the event that you pass away and in case of a regular emergency where your family just needs a little extra cash on hand.

#3 Get Coverage Now

Third, you want to get coverage when you and your family are young. Life insurance coverage is generally based on your age and your health, so the younger and healthier you are when you purchase your policy, generally the lower rates you can secure for the entire life of your insurance policy. Also, the longer you wait, the greater the risk that you could be disqualified from getting a policy, leaving your family at risk.

#4 Cover Both Parents

Finally, make sure that you cover both you and your spouse. Even if your spouse makes less than you do, or stays home to take care of the kids, the loss of their income and support can be hard to make up. In the event that a stay-at-home spouse dies, you may quickly discover that you need assistance with taking care of your home and raising your kids. Think about the value, not just in money, but in time and care, that each parent provides and make sure that your life insurance coverage can help ease that lost should either of you die.