Having a child brings a whirlwind of preparation and anticipation of the little one’s arrival. As a brand-new parent with a child whose age is measured in weeks, your life has changed dramatically. Insurance is designed to help individuals manage risks that could threaten your family’s finances and your ability to provide for your child. Check out these top five insurance coverages you should investigate now that you are a parent.
Both parents and children should have health insurance. In addition to the costs associated with standard “healthy baby” checkups, infants can be exposed to any number of illnesses that can quickly become serious. Even short hospital stays can be extremely expensive. Health insurance generally covers costs for routine health costs like vaccinations and trips to the doctor for fevers, rashes, and allergy testing. It is also important in case you or your child develops an illness or chronic condition that is expensive to treat and manage.
Once you have a child you will need to examine how much liability insurance you have for both your vehicle and your homeowners or renters policy. Having auto insurance is about much more than the ability to repair a fender-bender—it’s financial protection too. Getting in an accident without insurance can devastate your finances—especially if the accident is your fault. Vehicles can be very costly to repair, and if you don’t have insurance that financial burden is on you.
Homeowners and renters insurance policies do more than just protect your possessions, liability insurance will also cover you for any accidents that happen in your home. Injuries happen, and liability coverage will help to protect you from any unanticipated expenses that could arise from an accident on your property.
Although not likely, but still something to consider, younger adults are four times more likely to become disabled than to die. Car or sporting accidents, or health problems, can lead to the types of disabilities that could prevent you from being able to work. Having disability insurance can help to ease the financial strain associated with a disability. While some large employers offer disability insurance as part of a benefits package, most small and mid-sized businesses do not.
No one wants to think about what would happen to their children if one or both parents die unexpectedly, but it is important to consider life insurance. This is particularly true if your family relies on one income, or if there are two incomes, but one wouldn’t be sufficient to handle basic expenses. A life insurance policy provides some financial protection for loved ones during what would be an already difficult time.
If you have a pool, trampoline, or a playset, your home is bound to be the one the neighborhood kids want to visit. But having these recreational items on your property increase the potential for injuries and accidents—and the injuries can be severe. Umbrella coverage offers extra liability protection over and above the limits of the standard homeowners and auto insurance policies.
Becoming a parent is a major life change, and there are insurance policies that new parents should investigate. Taking the time to make certain that your policies and coverage are updated means more peace of mind for you, so that you can spend less time worrying and more time enjoying your new bundle of joy!
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