Life Insurance Tips for Expecting Moms and New Parents
An expectant mother glows when she is carrying her child in her womb, happily awaiting the time when she will deliver and hold her baby in her arms. Nonetheless, every expectant parent is also conscious of the expenditure that is part of bringing a child into the world, right from pregnancy care to future needs.
The traditional definition of a family has changed so much over the years, but what has remained constant is the sense of responsibility and devotion that parents feel towards their children.
In order to help keep your little one’s future secure, here are 5 essential insurance tips for expecting moms and new parents:
- Why is Insurance Crucial for Me and My Child?
Whether you are a stay-at-home expectant mom or a working parent, insurance is one of the most important financial tools you could invest in.Even if you’ve been saving up a college fund for your kids, their dreams may come crashing down if something happens to you, and they need to dip into those funds to meet daily expenses. Trying to make ends meet will become your family’s priority, instead of taking time to heal and rebuilding their lives.Life insurance can take care of your family’s needs if you die, covering everything from funeral expenses to childcare or a nanny to help the surviving spouse/partner help deal with very young babies. Long term care insurance or disability insurance can help pay medical bills and expenses if an illness, injury or accident occurs.
- What Kind of Policy is Best?
There are two important things you need to understand when you’re shopping for insurance while expecting a child or planning for one.First, what will be the death benefits in case anything untoward happens? Yes, that may sound like a spoke in the wheel and something negative you don’t really want to think about, but planning will help ease a lot of pressure if the unexpected happens. Life is unpredictable, so it’s best to be prepared!Second, what kind of coverage is required? Is the policy just to help you tide over the pregnancy period or do you think you think you would require coverage for a longer term? So discuss this with a financial advisor and your family, and think about what kind of financial support you and your child will need.
- Whole Life vs. Term Life Insurance – Which One is Right for Me?
To answer this question, you need to understand the difference between the two and how they work.Even though term life insurance costs less than whole life insurance and is affordable for families with just one working parent or a single mom, it does get more expensive as the years go by. On the other hand, it takes care of the need for coverage when you’re just starting out.Whole life insurance may put a dent in your income for now, but can be an invaluable asset for the future. Since it provides financial protection for your family over your entire lifetime, it can help them meet expenses and even put your kids through college if you die unexpectedly.
- When Should I Get Insurance?
There is only one answer to this – get your policy coverage as early as possible, preferably once you learn you’re expecting a baby.If medical issues show up later down the line and you choose to go in for policy coverage then, it could be more expensive, depending on the medical issue or complications involved. If you wish to give birth at home, check if the policy covers it – many do not cover certain aspects of pregnancy or procedures employed during a difficult delivery.Take into consideration pre- and post-partum expenses at the hospital or birthing center where you would deliver, including the cost of delivery, pre-natal and if required, post-natal care. Make preliminary enquiries about costs before you decide what kind of health insurance you want, and check if discounts are available at these centers.
- What about Policy Coverage at Work?
If you’re employed and think the group coverage at work will be enough, then you may need to think again.It’s better to buy an additional individual policy even if you have group insurance at work. If you and your partner are both working, then check the company policies and see if they provide for pregnancy coverage. This will help you understand what costs will be borne by the insurance plan and what you will need to bear separately.If you’re a stay-at-home parent, you should definitely invest in an individual policy, or check if your partner’s coverage includes you both. Check the different kinds of insurance plans available and read the fine print on each, so you can choose one that best suits your family’s coverage needs.
Scout around before you jump in, plan your expenses well, calculate unplanned expenses, and then choose the coverage of your choice. Keep your pregnancy stress-free and safeguard your child’s future when you invest in the right financial tools!