The Need For Insurance Before Having A Baby

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There’s a lot to take care of in the lead-up to having a baby.

If you don’t have an insurance policy but plan to have a baby in the next year or so, it’s a good time to consider getting one.

Here’s why:

1. You’ll likely get a better rate

The way insurance works, the younger and healthier you are, the lower your rate, regardless of the amount of coverage you get. Generally speaking, most people’s health declines with age. The longer you wait to buy a policy, the greater the eventual cost.

If you’re already pregnant and you’re the breadwinner of the family, it’s still possible to buy insurance, though you’ll probably get the best rates if you undergo the medical exam before or after pregnancy.

Still, if you’re already carrying a baby and the need for insurance feels urgent, some insurance companies will allow you to retake your medical exam a year or two after giving birth and then adjust your rate accordingly.

2. One parent plans to stay home

If one parent is leaving a steady paycheck behind to stay at home with the baby, it’s time to get insurance.

Start by choosing a coverage amount equal to a year, two years, or more of the working partner’s income so the stay-at-home parent won’t have to rush back to work too soon if the breadwinner dies. The coverage amount doesn’t have to be perfect — something is always better than nothing. If you have more kids or one parent decides to stay at home indefinitely, you can always increase the death benefit later.

3. You need a contingency plan

Most parents plan to leave at least a little bit of money to their children and/or spouse. But when you’re young, building up a trust or even making a formal will usually aren’t top priority amid bills and more immediate savings goals. Insurance can act as a stand-in during the earlier years, or indefinitely if you have a permanent policy.

Whoever is named as the beneficiary on a policy will get the entire death benefit. But keep in mind that some countries won’t allow you to name a minor as a beneficiary on an insurance policy. Even in places where it is allowed, experts often recommend naming a spouse or legal guardian instead.

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