Growing Family? Reassess Your Insurance Policies
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Welcoming a new family member is an exciting time for parents. Whether you’re planning to have one child, multiple children, adopt, or even blending two families, there is a lot to prepare for when adding to your family.

One more consideration should be added to the to-do list: updating your insurance policies. Here is some guidance for starting the process.

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 than the amount they 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 consultant to determine what you may need to meet future family obligations.  

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, since insurance rates tend to rise with age. Meet with your insurance consultant as your situation changes to discuss how he or she can help your family meet its future needs. You may also want to consult with 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 people, 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 costs. Estimate the amount of coverage needed by getting an appraisal from a licensed professional. The appraiser can also calculate the cost of rebuilding your home with similar quality features in today’s market. Consider inviting your insurance consultant to take pictures of the property, both inside and outside, as these can be used as evidence when filing damage claims.

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 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 to for ideas on how to keep your family protected. Learn more online and receive a life insurance quote from Regions Investment Services.

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This information is general in nature and is provided for educational purposes only. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Regions encourages you to consult a professional for advice applicable to your specific situation.

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