New Baby Financial Checklist
- Health Insurance for baby – If Dad or Mom have health insurance when baby is born, rest assured your baby will be automatically covered for the first 31 days of life under either parent’s plan. However, it is important to contact your insurance company ASAP to find out what they require…sometimes it’s automatic, but other times you must send in a new enrollment form (such was the case with my family insurance).
- Lower health insurance costs – ask your agent or broker to check into individual health insurance costs for dad and baby, especially if it’s your first child. This can often lead to lower premiums than a group plan.
- Savings – During an airplane emergency, we are taught to take the oxygen for adults first, and then assist our children. The same applies to your savings…make sure you do what you need to do for yourself first – reduce expenses, pay off debt, fund your IRA. This will establish a solid foundation so you are better equipped to help your child.
- Life insurance – no one likes this subject, but who is going to pay for your child’s care if mom or dad die prematurely? Plan on adding 20 more years of insurance now. It’s the best gift you can give your family.
- Disability insurance – equally scary is the possibility mom or dad lose their ability to earn a living, because of an unexpected accident or illness that keeps them out of work for a period of time. Ask your agent to review your income replacement plan for anyone working to put food on the family table.
These are the top 5 financial considerations among young parents, from my experience. If you have questions or need help with any of these areas, our office is here to assist you.