Welcome to my new series on Life Insurance For Women. In the introduction, I mentioned the reasons why women need insurance and how it empowers you.

I am going to interview Chad Viminitz on the following topics:

Women are being overcharged, a lot, for mortgage insurance – what you need to know!

Why women talk themselves out of the life insurance they want/need?

How to prepare for the baby- 3 pieces to financial protection (will, mat leave savings, life insurance).

Is underwriting for women different?

In the third interview we focus on how to prepare for a baby, the three pieces of financial protection (will, mat leave savings, life insurance).

Chad having a baby is a significant life event. Why is being financially prepared often ignored?

The simple answer is: a baby’s arrival is much more fun and exciting! Expecting your first or 2nd (and 3rd or 4th) child is full of excitement and unknowns but also can be exhausting, leaving little time for financially practical tasks. Pressing priorities are obvious like getting the baby room/house ready, choosing a name, attending prenatal classes, and still living daily life. Financial matters are often not part of baby conversations with friends and family.

What are 3 ways expecting moms can be financially prepared?

You might not be able to get fully prepared for motherhood but here are three ways you can have your finances in order:

1. Write a will: Your will is the last chance for your wishes to be heard; given this includes what happens to your children, having a will is extremely important. Before the baby arrives you can have your will done, it is standard practice for lawyers to give consideration for future children.

2. Discuss changes to cash flow during a maternity or paternity leave: The cost of having kids can easily catch new parents off guard and people prefer to discuss babies, politics, religion, and personal problems before finances. Financial communication is key to balancing financial priorities with lifestyle. Do a test run and live on a reduced income before the baby arrives and save a little extra during the months leading up to the due date.

3. Apply for life insurance: No one wants to buy life insurance but no one wants to be left financially exposed or for their family to be financially vulnerable. Getting the best term life insurance is now quick, easy and very affordable, with no high-pressure sales. Just get it done and enjoy time with your family!

Why do pregnant women, in particular, need life insurance?

“I’ll get life insurance after the baby is born” is often said but life gets really busy, very fast. It’s normal to want to delay a decision like getting life insurance until we really have to but good intentions don’t always translate into action. Almost 45% of Canadians have no life insurance at all. When the baby arrives so does less sleep, visitors, doctor appointments, parent groups and that doesn’t include regular life (eating, work, house stuff, and other relationships).  Getting your coverage in place in advance ensures you have financial protection for your child and family from day one.

What stops pregnant women from getting these financial tasks completed?

There is a lot going on! Physically one’s body is tired or aching and the anticipation and excitement can emotionally be draining.  Finding the energy and time to see a lawyer, discuss cash flow and get life insurance can be like pulling teeth! Being financially prepared in advance of the delivery can reduce stress and give you more precious time to spend with your newborn. The financial protection for your growing family can be just as critical as reading sleep books.

You say financial security is invisible, can you explain?

When you are sharing your new baby with friends and family, the physical safety of the baby can be seen (ie. car seat, crib, etc) but financial stewardship or safety is invisible. Friends and family don’t see if a will or life insurance is in place and your financial plan is not truly tested until the unthinkable happens — only then will the strength of your financial security be exposed.

How much life insurance do most new parents need?

There are two main goals for having life insurance:

Eliminate Debts (ie. mortgage)

Protect Income (preserve lifestyle)

For most individuals that means having 10-15X their annual income in life insurance coverage. Term life insurance rates are at historic lows making proper coverage for families more affordable than ever.

What is the best life insurance product a new family to purchase?

The best, cheapest, and most appropriate product for most families is 10-year term insurance. A good 10-year term policy gives you the most amount of coverage for the lowest price — allowing life insurance to fit into an already full budget. 20-year term insurance can also provide good protection but it will cost more. My advice is to get the right amount of financial protection (ie. coverage), beneficiaries never ask “Did my partner have a 10 year or 20-year term insurance?” They ask “Did we have enough?”

Why do so many of us procrastinate on getting life insurance?

The anticipation of a child’s arrival is exciting but it also can stir up a sense of tension of “responsibility” and from a financial perspective we are unsure what to do with it. We are also rarely forced to self evaluate our own “financial worth” which can be a strange concept to many. Intuitively, I think most people know that their financial value to their family and children is a big number and that can be scary and with 80% of people overestimate the cost of term life insurance it’s easy for us to push aside the decision to get coverage. The good news is that the best and cheapest form of term life insurance need for most families is at historic lows.

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