Katy Certified Financial Planner - Financial Planning - Newborns and Insurance Policies
A newborn brings many changes to your household, including insurance.
Health – Add your baby to your medical policy within 30 days of birth. Otherwise, many policies require you to wait until the next enrollment period.
Life – Boost coverage to take into account the future cost of raising your child, including college. Provide coverage for a stay-at-home parent, too. When calculating your insurance needs, consider inflation. At a 4 percent annual rate of inflation, a $100,000 life insurance policy will buy only $67,600 of goods 10 years from now.
You may want to use your will to create a trust with your children as beneficiaries in order to manage the life insurance proceeds (and other assets) in the event both parents die while the children are still young.
Other – Review your other policies. For example, your auto insurance may cost less if a spouse who previously drove to work every day is now staying home with your child.
Return to Risk Management Page
Please use the form below to contact us.