Welcoming a new family member is an exciting time, whether you’re planning to have one child, multiple children, adopt, or even blending two families. One consideration you shouldn’t forget: Updating your insurance policies.
It’s important when adding to your family to ensure your insurance policies are up to date. Here is some guidance for starting the process to update your life, home, and auto insurance.
Life Insurance for a Growing Family
When you add a new member to the family, it’s a good idea to increase your life insurance coverage. To determine how much life insurance coverage you need, consider your current financial situation and estimate your family’s future financial needs. The amount of money your family needs today may be very different from what it will need in the future.
For example, if you have recently adopted an 8-year-old, you may want to consider how much money will be needed to send your child to college in 10 years. Make sure your coverage also takes into account rising costs due to inflation, home maintenance costs, and other necessary big-ticket purchases. There are many types of life insurance, so meet with your insurance agent to determine what you may need to meet future family obligations.
You should also reassess your insurance needs every three to five years to determine if your current policies will meet the financial needs of your family. Updating your policy sooner rather than later probably gives you an advantage, as life insurance rates tend to rise with age. In addition to your insurance agent, you may also want to consult an attorney to discuss any impact that life insurance policy changes may have on your estate planning objectives.
Homeowner’s Insurance for a Growing Family
For some, welcoming a new family member means upgrading the family home. Reassess your homeowner’s insurance policy each year and regularly ask whether you have enough insurance to repair or replace your home — and your belongings — if they are damaged or destroyed. Consider adding riders to your policy based on the natural disasters and environmental issues most common in your area, such as mold, earthquake, and sewage backup. These types of damage are rarely covered in basic insurance plans.
If you’re doing any home improvements to accommodate your growing family, be sure to add them to your coverage. Make sure your policy adequately covers rebuilding or remodeling costs. Get an appraisal from a licensed professional who will estimate the amount of coverage you need.
Auto Insurance for a Growing Family
As your family grows, you might consider purchasing a new vehicle based on its safety performance or size. If so, inform your insurance provider before you make a purchase to see how your policy might be impacted. If you haven’t already done so, ask your agent about improved auto insurance rates for married couples.
Keeping Your Family Safe and Sound
As a parent, your top priority is likely making sure your family and children stay safe and sound today, tomorrow, and far into the future. So make sure your insurance policies protect them from the unexpected twists and turns life brings.
Life changes can have implications for your insurance policies. Use our Life Changes Insurance Checklist for ideas on how to keep your family protected. Learn more online and receive a life insurance quote from Regions Investment Services.
