Starting a family is very exciting and can be a bit overwhelming, if you are stilling adjusting to the idea. One of the easiest things you can do to add a sense of security during this unpredictable time is to review and update your family insurance portfolio.
Health Insurance
Having a baby can be expensive, especially if your health insurance doesn’t provide all of the options you’re looking for. Since the Affordable Care Act passed, your insurance policy must cover maternity care, but not all plans are created equal. Do you have your heart set on delivering at a certain hospital? Do you want to use a midwife or doula? Take a look at your health insurance as early as possible to make sure that you are on the right plan.
Life Insurance
When a new life is starting, the last thing you want to think about is what happens if something happens to you. But having a life insurance policy in place will help you feel at ease knowing that your loved ones will be taken care of.
So how much do you need? Of course, each person has different requirements, but a good rule of thumb is to add up all of your debts plus the estimated funeral costs and then divide the desired yearly income by 0.4 and add those together. For example, your mortgage, student loans, credit cards and funeral expenses come up to $480,000 and you want your spouse to have a yearly income of $40,000 ($40,000/.4 = $1,000,000). Your total life insurance policy should be for $1,480,000. But don’t worry about getting the formula right, your insurance agent can help you decide which type of insurance policy is right for you.
You also need to think about happens if something occurs to your spouse. If your spouse doesn’t work and stays home with the kids, you might be surprised at how much extra income is needed to cover the costs of the work they do. Will you need a regular housekeeper? How much will be needed for extra day care? Or maybe you want to be able to put your career in a secondary position so that you can be there for your children, at least for a couple of years? It’s hard enough for children to lose a parent, it’s even harder if the surviving parent can’t spend enough time with them. Having a financial net for you in case something happens to your spouse can make the transition a lot easier for everyone.
If you’re worried about the extra cost of a life insurance policy, don’t be. Life insurance policies are very reasonably priced and a good insurance agency can provide you with affordable options.
If you don’t have an agent and live in Sacramento or anywhere throughout California, contact us today or give us a call at 800-400-6394 and we can help you get peace of mind so you can focus on your family.
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