Becoming a parent is one of the greatest responsibilities you will take on in life. That’s why it’s important to make sure you protect your family and their future properly by purchasing the necessary family insurance products.
Here are 4 questions you should be asking your broker when starting a family.
1. WHAT TYPE OF INSURANCE DOES MY FAMILY NEED?
There are several products that can protect your family’s finances, health, and you children’s future. Let’s run through your options!
Life insurance will guarantee financial protection for your children in the event of your passing. Now, this may be a topic not many like to speak about, but it’s very important to consider these things so you can ensure your future children and spouse can go on living comfortably when you’re gone.
Income Replacement Insurance
So, let’s say you were involved in an incident that now puts you out of work, and you are unable to pay your bills. Bills that are now increasing, as the size of your family increases! Income Replacement Insurance, such as a Disability policy, can guarantee you will still be paid, even if you sustain an injury that prohibits you from working.
There are many policies that you may already have in place. Homeowner’s, renter’s, auto, and umbrella insurance all provide liability coverage which protects your family against lawsuits and major claims. Make sure you review with your broker the limits and coverage you should have to ensure your family is protected properly.
Is it necessary? Absolutely. Health insurance will cover the cost of your medical expenses, including those of your future children. It’s important to be aware of the coverage on your plan, or the plans available to you, before starting a family. There are many medical appointments you will be attending during and after pregnancy, and it’s no secret that medical attention can be pricey. Make sure you understand what’s covered under your policy to avoid spending hefty amounts out of pocket.
2. HOW DO I KNOW HOW MUCH LIFE INSURANCE COVERAGE I NEED?
It’s best to consider the type of living your family will be accustomed to, and choose a plan that will mirror that lifestyle in the even that you pass. This will give your spouse and children time to mourn, cope and adjust before taking on the world without you. Your broker can review your coverage options with you and advise what coverage amount is necessary for you and your family.
3. WHICH INSURANCE PLAN MAKES SENSE FINANCIALLY FOR MY FAMILY?
It’s important to stay within the means of your budget when starting a family. There are many additional costs that may arise, and that’s why your broker is obliged to discuss all of your available options that are reasonable for your family. Consider reviewing your health insurance to make sure you have sufficient maternity coverage. Reviewing your current policies to see if you are eligible for any additional discounts or more competitive rates can offset the additional costs you incur when starting a family.
4. WHAT KIND OF INSURANCE DOES MY EMPLOYER OFFER?
Time to do some research into what supplemental family insurance products you have access to through your employer. Your overall options include:
Short Term Disability
This type of Income Replacement Insurance operates under the assumption that you will heal fairly quickly. It’s good for ailments such as physical impairments, recovery from heart attacks or strokes, car accident injuries, depression, etc.
Long Term Disability
In the event that your short term disability insurance runs out, or you have an ailment that will take longer to recover from, long term disability will cover you. It can also help if you have an undetermined illness, such as cancer.
Is your family protected? Let’s talk.
Opinions expressed in this article are solely the author’s opinion, not intended to provide the reader with legal or any other professional advice. Should you need advice or opinion, consult with a qualified professional to address your specific needs.