There are plenty of things to think about in the wake of preparing for a new member to join your family. But newbie parents should also be prepared to take stock of their financial situation prior to a birth.
Pregnancy is the perfect time to check on emergency savings, your overall budget, insurance needs, and estate planning documents to identify whether or not anything needs to be updated. It’s certainly not the case that every financial question and concern has to be answered before the baby arrives, but it’s much easier to set up a meeting with your financial team and to review these important documents when you are not carrying around a young infant.
Make sure that you consider the whole picture of your financial situation and consider re-evaluating your life insurance. If you are looking to invest in insurance for the first time, term life insurance is often the most affordable and typically includes a term of between 10 to 30 years.
This can give you and your partner a great deal of peace of mind when you want to support one another, should something happen to you. The concept is that a payout would help a guardian or a surviving parent to care for your child and pay for necessary expenses or even the child’s college costs.
In addition to using tools like insurance to help protect your family financially, don’t forget about the importance of updating your will to name a guardian for your minor child if something were to happen to you or your partner. A lawyer can help you review all of the information you need to evaluate, create, or update when you’re adding a new member of your family.