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.
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