What that means for your insurance.
Expecting a baby or being parents to a newborn for the first time can be one of the most exciting times of your life. Your house is full of baby gear, you’ll find raisins in your car for years to come and the amount of sleep you get will never be the same! In between grandparent visits and feedings, it’s important to sit down with your insurance agent to review your policies and determine what needs to be updated when welcoming your new bundle of joy.
Life Insurance
Did you know 40% of Americans don’t have life insurance? Life insurance is meant to provide for your family if you were to pass away. Now that you have a baby in the picture, this is even more important. Not only can life insurance take care of funeral expenses or debt, it can also be set aside for future needs, like your baby’s education. Not sure how much life insurance you need? This insurance calculator is a good place to start.
Not only do you need life insurance, but your baby needs a policy too. Yes, it will pay for expenses if your child were to pass away, but it also makes sure your child has coverage as an adult. If your child is diagnosed with a condition that would make it hard or impossible to get life insurance, having a policy from birth ensures coverage for him/her.
Beneficiaries
Once you have a life insurance policy in place (or already have one), it’s also important to update the beneficiaries on your policy. You’ll want to add your child as a beneficiary to make certain they are taken care of if both parents pass away. This isn’t just the case for life insurance. You’ll need to talk with your financial advisor about updating the beneficiaries on any investments you have (IRA, 401K, etc.).
Advanced Planning
While this probably isn’t something your insurance agent can help you with, it’s important to create or update your will with the addition of a baby to your family. More than half of Americans do not have a will. Having an updated will is important for protecting your assets and your family.
If you’re expecting a baby or have a newborn, make sure to contact your Meyer Insurance agent about what you need to do to protect your family.
