An additional family member calls for an assessment of your insurance coverage. Take these considerations under advisement.
1. Make use of tax advantages.
Ask if your employer offers a flexible spending account or health savings account (HSA), as these plans allow you to set aside pretax dollars for medical expenses and child care.
2. Evaluate your options.
If you and your spouse both have employee benefit options, compare the health insurance policies to see which is the best for your new baby.
3. Account for child care costs.
In determining the amount of life insurance to purchase, take into account your full child care costs (i.e., housing, education, child care, medical needs, etc.), especially for children under 5 years old or with special needs.
4. Plan for carpools.
Consider increasing your liability insurance in case of an accident when transporting other kids. (It may be a while before your newbie has friends of her own, but make the upgrade while you’re thinking about it or at least make a mental note to do so in the near future.)
5. Protect the backyard.
Inform your insurance company if you install backyard items for kids, such as a swing set, trampoline or swimming pool. You might consider increasing your liability coverage, which protects you in the event that someone is injured while on your property, with an umbrella policy.
For more information about insurance and the right fit for your stage of life, visit insureuonline.org.
You can also check out our Ask the Experts article on how to evaluate your family’s insurance needs prior to the arrival of a new baby.