From the moment they take their first breath, your life will never be the same.
Perhaps the most life-changing event you’ll ever experience is the birth of your first child. And no matter how much you plan, this new chapter ignites the need for many big decisions that you likely never even thought about before. Keeping your family safe and providing for them are at the top of the list. And whether you’ve just brought your newborn home from the hospital or you’re sending you first child off to kindergarten, the new responsibilities that parenthood brings are exciting but often daunting. With that in mind, here are some tips to help make sure you’ve covered all your bases in protecting your young family.
1. Draft a will
It is not a fun subject and no one likes to think about when they will pass away, but once you bring a child into the world that reality has to be addressed and planned for. It’s important to remember that you need to not only ensure that your family will be financially stable in the event of your death, but also that they will be cared for, especially if something happens to both you and your spouse. A will should include instruction on who will be the guardian of your children in the event of your death. In addition, you’ll want to make sure that they are financially taken care of and that all of your assets are properly allocated.
2. Get life insurance
One of the biggest mistakes young parents make is thinking that they don’t need life insurance. It doesn’t matter if you’re in your twenties, your forties or older, you need to make sure that you have a policy in place in the event of the unexpected. Purchasing a life insurance policy will give you the confidence that you’ll be providing for your family no matter what, and because there are many options available, there’s no reason not to purchase a policy—it’s worth its weight in gold for the peace of mind that it provides.
3. Consider a whole life insurance policy for your child
Many parents purchase a whole life policy for their children and you can do this when your child is just a few weeks old. This type of policy accumulates value over their lifetime and coverage will increase when they reach 18 years of age. Besides the obvious benefit of providing coverage for your child and the fact that it accumulates in value over the course of their lifetime, when you purchase the policy you are able to lock in the premium rate for the life of the policy as long as the premiums are paid. Once your child reaches 21, they can take over the policy and keep it for their lifetime as well.
4. Review all your beneficiary information
Make sure you review who you’ve named as your beneficiary of your savings accounts, any investments, retirement accounts, and life insurance policies. If it is your spouse or another family member, be sure to add your children as secondary beneficiaries and to make sure that whoever will be in charge of your accounts (the executor) will manage everything in the manner that would like.
5. Think about college
It may be hard to imagine your little one who’s playing with blocks and learning their ABC’s going off to college, but that time will come—and much sooner than you think. The time to begin planning for college is right away, because each year the cost of higher education increases. In some states, Florida being one of them, you can purchase a pre-paid college plan for your children the moment they are born which ensures that tuition, books, and even room and board will be covered. If you don’t choose that option, there are various savings plans you can get that will help you put aside money on a regular basis for college.
Starting a family is one of the most exciting and undeniably transformative experiences you’ll have in your life. And when you begin on the remarkable journey of parenthood, you’ll want to do all that you can to ensure your children’s well-being. Make sure you are prepared by planning ahead and having the right insurance policies in place. Talk to us today about the many choices in life insurance and to learn other tips on planning for your family’s future.