DON’T STOP
With the Nursery... WITH THOMAS MCCARTNEY
eing a young, expecting parent is such an exciting time! There are so many things to prepare for and they seem to all be additional demands on top of an already busy life. Thinking back at that stage of life I laugh at the incredible focus we put on the preparation of the room our newborn would be coming home to. Partially driven by hormones, partially by the excitement of it all, that room became a bit of an obsession.
As is often the case, focusing on a tangible task can be much easier than an intangible one even if the intangible is much more important. As important as the nursery is, of greater importance is getting your financial house in order as you prepare for the responsibilities of bringing a new, precious life into the world. Here are a few things to keep in mind.
INSURING A STABLE FUTURE FOR YOUR FAMILY HEALTH INSURANCE
Start thinking about health insurance long before the baby arrives. Find out about copays, deductibles, and premiums before you start going to doctor’s appointments and having diagnostic tests done. You’ll also need to determine how much of the delivery costs are covered as well as the baby’s coverage after it’s born. Babies are usually covered under their mother’s insurance for a period of time following the birth, but make sure you add the baby within 30 days, or else you may have to wait until the next open enrollment period.
LIFE INSURANCE
Now that you have a child depending on you, you’ll need insurance to provide for your family if your income is lost. You should also take out a life insurance policy for your spouse even
if he or she stays at home to care for the child—take into account the value of a stay-at-home parent’s services and how much it would cost to pay someone else to do it. Consult your financial advisor to help determine both the amount of insurance your family will need as well as the type you should purchase. There are pros and cons to both term and permanent insurance and for many a combination of the two is the best fit.
DISABILITY INSURANCE
During your prime income earning years, you’re much more likely to suffer a debilitating accident or disease than you are to die. This makes disability insurance equally important to ensure your family’s financial well-being. Your employee benefits may provide some disability protection but often not at the level you would actually need necessitating supplemental coverage.
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