Insuring Your Family
When a young couple finds out that they are expecting a baby, their first thoughts may turn to items such as cribs, baby bottles and diapers. It seems that there are so many things that must be purchased in preparation for this new arrival. But the one item, and maybe one of the most vital, that is often overlooked is insurance. The most obvious type would be health insurance in preparation for the care and well-being of mother and child, but serious consideration should also be give to life insurance.
Health Insurance:
There are various ways of acquiring health insurance. One of the most common is though your employer, or your spouse's employer. Most group plans through employers cover a new baby from the moment of birth. However, with the current economy, many employers are looking to cut costs, and one easy way is through cutting benefits or raising employee contributions. So while this works for most, there are other options to consider.
Individual Health Plans provide the same piece of mind, and usually coverage, of employer provided plans, and for some people may actually be the more cost effective solution. Many of these individual plans offer discounts for additional family members, and are relatively inexpensive for children. However, these plans are not required to take on family members simply because the primary policyholder is covered. If a member of your family has a pre-existing condition or disqualifying issues, this may not be of use to you.
There are also government run health programs, many that are exclusively focused on insuring children of low-income families. If you believe you may qualify for these programs, such as the Children's Health Insurance Plan, it would be worth your time to apply. The health, and financial, benefit could be considerable.
Life Insurance:
Chances are you have seen commercials for life insurance, maybe even had conversations with friends about getting a policy yourself, but when you are expecting your first child this topic comes out if the realm of "someday" and quickly into "now." But who needs life insurance coverage, and what is the most beneficial to you, your spouse and your growing family?
One possibility, especially for younger consumers, is term life insurance. This type of policy, in comparison to whole life insurance, does just what the name implies. It will cover you for a set term. The benefit to this type of policy is that it is usually less expensive than a whole life insurance policy, making it a more financially reasonable option for many young parents. It is advisable, however, to purchase a whole life insurance policy as soon as it is affordable. The goal with purchasing term life insurance is to protect you, and your family, until you are more financially stable to purchase the whole life policy. Whole life insurance policies get more expensive with age, so it is important to investigate and invest in these early.
Many new parents are prepared to purchase life insurance for themselves, but what about for their newborn child. Most of us think of life insurance as a policy that will protect you financially, and especially for your children, if the unthinkable should happen. Therefore, the idea of insuring a child, with no financial holdings, may seem unnecessary. However, there are quite a few benefits to purchasing a policy for the child's future. First, a whole life insurance policy purchased for a child will ensure that they are covered in the future. When a policy is purchased later in life, an adult must prove insurability. Purchasing for an infant guarantees coverage for your child as an adult, regardless of any health complications that might arise in adulthood. Second, the policy will accumulate value over the years. This value can also be borrowed against in the future, if necessary.
Purchasing insurance isn't just a way of insuring the health, safety, and financial stability of your family in the present, but it is also a way of protecting all of you over the years to come, no matter what the future may hold.