Insurance and Having a Baby
Any way you look at it, pregnancy is a costly endeavor. Not only must you ready a nursery and pay for pre-natal care, but the actual birth itself can be astronomically expensive. Even with a decent medical insurance policy to help pay for the hospital birth, you may be surprised at just how much having a baby will cost you. However, if you are pregnant or planning to become pregnant, rest assured that the cost of your precious little one is nothing compared to the joy that he or she is sure to bring you in the future.
According to recent estimates by the U.S. Department of Agriculture, it costs a minimum of about a quarter million dollars to raise a child from infancy to adulthood. People tend to think children are the most expensive as babies and teenagers, but the truth is that there is no inexpensive time in a child’s life. Every phase of your child’s life comes with massive expenses that can make budgeting more than a little difficult for the average family. College tuition alone can easily add another $100,000 to $300,000 to the equation.
Taking these enormous costs into consideration, one might think our great nation’s population growth would come skidding to a halt if money was the only factor involved. Although the joys and rewards of parenthood can’t be measured in dollars, it is crucial that you prepare for the financial impact of having your baby. A great place to start is by making sure your various insurance policies are in place and up-to-date.
Homeowner’s Insurance for New Families
Shelter is perhaps the most fundamental need we require as humans. As a parent, you have to keep and maintain an adequate roof over your child’s head for at least the next 18 years. This means that you need to protect your home against any and all unforeseeable events and circumstances that may come your way. A good homeowner’s policy tailored for you by your Killingbeck Insurance & Tax Preparation Professional can give you the peace of mind in knowing that your family’s home is completely covered. Our homeowner’s insurance policies will protect:
- Your family belongings
- Your home and other living structures
- Your liability in case someone gets hurt on your property
- Windstorm or hail
- Fire and lightning
- Vandalism or malicious mischief
- Damage from vehicles and aircraft
- Riot or civil commotion
- Glass breakage
- Volcanic eruption
- Personal liability
Homeowner’s policies from Killingbeck Insurance & Tax Preparation will also cover temporary living expenses in the event that your home is deemed uninhabitable. This will insure your family’s shelter if you’re struck by a peril.
Life Insurance for Parents
Your baby is a new dependent who benefits from your wages. As your child’s main financial support, you need to ensure your potential future income against losses in the event of your untimely death. Calculating how much life insurance you need to meet your family’s requirements is the first crucial step. Financial advisors suggest an analysis that adds up your needs for:
- Final expenses
- Outstanding debts and emergency expenses
- Mortgage payment
- Education (dependents’ college tuition)
- Family maintenance (childcare, food, clothing, utility bills, insurance and transportation)
After these factors are added up, you should subtract assets such as savings, stocks, bonds, mutual funds and other life insurance policies.
In most cases, you’re going to want to name your spouse as the beneficiary on your life insurance policy. Even if you’re currently divorced, you’ll still probably want to name your ex-spouse as the beneficiary because they would be the primary caregiver for your children in the event of your death. Be sure not to name any children under the age of 18 as beneficiaries – by law, minors cannot receive a life insurance benefit until they’ve reached legal adult status unless you’ve set up a special trust to hold the proceeds.
Adding Your Baby to Your Health Insurance Plan
Soon after the birth of your baby, you should submit an application for his or her Social Security number. You’ll need to list this number on your tax return form for the child to qualify as your dependent. In most cases, the hospital where your baby is born will make these arrangements. If yours doesn’t, call the Social Security Administration immediately to make arrangements at (800) 772-1213. Health insurers will also want your child’s SS# as soon as it’s issued.
New parents usually have about one month after the birth of their child to add them to their group health insurance plan. If you fail to do so within 30 days, you may be required to wait until the next annual ‘open enrollment’ period before you can add your child to your plan. If your employer offers multiple health insurance options, open enrollment is a good time to evaluate your coverage with your Killingbeck Insurance & Tax Preparation Professional to ensure that it meets your new family’s needs.
Having a Baby? Save on Insurance with Killingbeck
Having a baby is a life-changing experience. Lacking the proper insurance can be, too. If you recently had a baby or are expecting one soon, now is the time to examine your new insurance needs. At Killingbeck Insurance & Tax Preparation, we want to help you and your new bundle of joy in the best way possible. Fill out our confidential online contact form or call us today at (765) 452-8000. We’ll provide you with all of the latest homeowner and life insurance options for your new family.