You're expecting, and there's so much to consider: pink, blue or gender neutral colors for the baby's room? Which parent will stay home, or will daycare be an option? Midwife, birthing center or hospital? Another thing you may want to think about before your new bundle of joy comes into the world is how it will affect your insurance. You'll be surprised at all the different ways having a child can impact all different types of insurance. Here are just a few:
Car Insurance:
Having a newborn might mean upgrading to a safer vehicle, which can be expensive. The good news is that a safer vehicle, combined with the fact that most parents are more cautious drivers after all, you are carrying precious cargo may result in lower premiums. Check with your agent to find out if you qualify for any special discounts; and if you're thinking about buying a new car, be sure to look into how much it will cost to insure it before you make a commitment.
Life Insurance:
With a child in the home, it's more important to think through and have a plan in the event that you or your spouse should pass away. How much income would be lost, and how would that affect the surviving parent's ability to care for the child on their own? What would you want to happen in the worst case scenario, if something happened to both parents? Meet with your agent or advisor, review your life insurance policies and make necessary adjustments to protect your new family.
Health Insurance:
If you're planning on having children, the sooner you can get health insurance, the better. In many cases, insurance companies still do not consider getting pregnant a life-changing event, which means that after you find out you're expecting, you still have to wait for the open enrollment period to get coverage, and that may be nine months later, which means you're on your own for prenatal care. Because of the well-documented negative implications of poor prenatal care, maternal care advocates are working on removing this barrier. But for now, you'll be able to add your baby to your plan only after you give birth.
Disability Insurance:
In addition to finding out your company's maternity or paternity leave policy, you should also look into short-term disability insurance and how it works with maternity or paternity leave at your company. Some companies use short-term disability insurance as maternity leave, others offer a combination of both, in case you need to be absent from work for a longer period of time. Maternity leave can be either paid or unpaid, but disability insurance will cover a portion of your salary while you are away. As with health insurance, you must be enrolled in disability insurance before you become pregnant, so plan ahead!
For any insurance questions, call or contact Insurance Wagon today.