Insurance New Parents

One of the first actions new parents should take after the arrival of their family additions is to evaluate the existing insurance coverage they have. Usually, several changes need to be made.
If the existing life insurance coverage for each parent was set up years earlier, the amount of the policies may be less than enough to cover expenses in the event of the death of one or both parents.
Additionally, the list of beneficiaries should include the baby, even if he or she is only days old. In multi-children families, more coverage will be necessary and all children would need to be named as beneficiaries.
Along with the adjustment of beneficiaries, someone should be designated to care for the baby should both parents die. Some accidents result in the death of both parents, so this precaution is an important one.
A friend or family member should be designated and agree to accept this responsibility and to handle the use of life insurance benefits as best befits the child.
Another reason why new parents should check into their existing insurance coverage is because premium rates have been going down since 1996, and there is a good chance that a new policy will cost less for more coverage.The joy of a newborn baby often makes new parents forget about such things as life insurance and the very real problems that will exist after their sudden departure from this life. Just as new life comes into the world, existing life goes out of it.
The amount of coverage needed for life insurance varies according to lifestyles and the debt of the insured individuals. Because term life insurance is so inexpensive for young adults, it makes sense to attempt to estimate what expenses will be for the baby for as long as 25 years into the future.
Life insurance for new parents should cover things like a home mortgage, college costs, and other items that are part of a child's development.
It is hard to think of a new baby growing up without you or your spouse. The many events in a child's life that parents can share are the most wonderful times in a family's existence. If they must occur without you, be sure there is enough financial security that the new baby will cared for sufficiently.