RoxanneYour baby has finally arrived, and while you may be overwhelmed with joy, worry may soon hit. Why? You start to think of your baby’s future and all the costs and unanticipated events that can come with it. And this causes you to panic.
Luckily, there’s no need to panic as long as you have a plan in place. So to make your newborn’s future and your mind as worry-free as possible, make sure your plan contains at least some variation of these tips:
1. Explore your childcare options.
Although you may tackle the primary task of caring for your newborn, you’ll reach a point where someone else will step in to help. Don’t wait for this point to arrive without a plan, as it can take weeks to find the right nanny or daycare. Instead, start looking at your options now so you can make the most informed choice as possible.
Before your maternity leave ends, interview nannies and visit daycare centers in your area. You can streamline this process by asking for recommendations from friends and family who can point you in the right direction.
2. Add your baby to your health insurance policy.
Even though most plans give you 30 days to add your child to your policy right after they’re born, don’t wait until the last minute to do so. If your baby gets sick, you’ll want to have coverage in place to avoid any issues.
3. Purchase a life insurance policy for your child.
This move is optional and tough to make, as no one wants to think about the possibility of losing a child. Still, you can use a term policy to have in place until your child is self-sufficient to give you added peace of mind.
Life insurance policies for children often have low rates, so don’t worry too much if your budget is already tight. The rates are low since they usually just cover funeral costs.
4. Add your child to your life insurance policy.
While buying your baby a life insurance policy right after they’re born is a solid move, you’ll want to add them to your existing policy, too, if you have one.
5. Create your will.
If you don’t already have one, now is the time to write your will, so you know your child will be taken care of if you or your partner pass.
Remembering to write or adjust your will after your baby is born ensures that you have control over their potential guardian instead of the courts.
6. Get disability insurance.
Life insurance can protect your family in the future should something happen, but what about now? What will you do if you can’t work for several months post-childbirth?
Disability insurance can help here, especially when it comes to supplementing your monthly expenses if you can’t work. Pick one out or make sure that your current disability insurance policy has sufficient coverage.
7. Don’t put off your personal financial goals.
It’s easy to get distracted once a new baby is born. You may have started saving towards your retirement, but the latest addition to your family has put that goal on hold.
Even though a baby can be expensive, don’t let it take you off track. Continuing or starting to save for your retirement means your child won’t have to take care of you later on.
