Maternity Insurance for You and Your New Born Baby
If you have or are about to welcome in a newborn into the world, are you prepared with the right insurance to cover the child and your family as a whole?
As any current parent can tell you, being a new parent is a life-changing event. If you do not have the necessary health and life insurance in place, your life can take a turn for the worse.
When it comes to life insurance and newborns, keep in mind that you are that child’s main or sole wage earner, so you need to have the proper coverage in place in the event you pass away.
As you shop around for the proper amount of life insurance coverage, remember that you should break down your needs into several categories.
First, what are your short-term needs (final expenses, outstanding debts, emergency expenses etc.)? Secondly, what are your long-term needs (mortgage, education responsibilities for your newborn, family bills etc.)? When you have these figures, add them up.
Next, compile your assets that can include stocks, bonds, savings, and mutual funds and so on. You want to gather those figures, add them up and then subtract them from the figure you compiled for your needs list.
When you get to naming a beneficiary for the life insurance policy, it typically will be your spouse. It is important not to name your minor children to this position because they are unable to obtain a life insurance benefit until they turn 18 unless you have set up a trust to maintain the proceeds.
Another item to remember is not long after the baby’s birth, you will need to apply for the newborn’s Social Security number. This number will be listed on your tax return so you can invoke the dependency exemption for the child.
In some cases, you could be dealing with only a month’s time to add your child to your group health insurance following his or her birth, so act quickly.
In the event you are thinking about more children down the road, remember that no individual health insurer will grant you a health insurance policy in the event you are pregnant when you apply. It is very important to apply and have a policy in hand before getting pregnant again.
If you are dealing with group health insurance, keep in mind that your employer is not legally required to offer health insurance at all. If your employer does choose to provide your health is required to comply with any state laws that mandate maternity coverage.
Having a baby can open up a whole new world for you; just be sure to be properly insured so your new family is protected.
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