Having
your first child is a momentous event that brings many changes. Just
as there are changes to your home life, schedule, and finances, there
are also changes to your overall risk exposure. As a result, your
insurance needs change. If you're beginning a family, make sure you
consider these three key insurance coverages.
1.
Life Insurance
Life
insurance should be your first consideration, for this ensures the
financial well-being of your loved ones in the event that you pass
away unexpectedly. Regardless of whether you already have a life
policy, you should review your coverage needs in light of your
family's new addition.
If
you don't yet have life insurance, now is the time to purchase a
policy. Most people purchase enough coverage to replace their income
and cover major childrearing expenses, such as college tuition. Make
sure to get coverage for at least as long as you'll be financially
responsible for your new child.
If
you already have life insurance, now is a good time to reevaluate
your coverage needs. You may find that your policy still provides
enough protection, or you might want to increase protection. If you
want more coverage, the easiest way to procure additional protection
is usually by purchasing another policy.
Additionally,
don't assume you can forgo life insurance if you aren't working
outside the home. Stay-at-home parents provide economic value to
their families. Calculate how much childcare, food prep, and cleaning
would cost in the event of your passing, and look for a policy that
could cover those expenses.
2.
Auto Insurance
While
many people believe that auto insurance simply helps with paying for
damages to your car or others’ after an accident, this coverage
also helps your family, especially if you heavily rely on one car for
transportation.
First,
without auto insurance in the first place, you would have to pay for
any damage or injuries in case of an auto accident or other incident.
While an auto insurance policy often includes an upfront deducible,
the insurance often covers most, if not all, of the rest of expenses
incurred. Having that protection helps protect your family’s
budget.
Additionally,
if a car accident totals your car, then the right coverage can
provide the means for a new car of equal value as your previous car.
That way, you won’t have to worry about spending a lot of money on
a new car. That protects both your budget and provides you with a
means of transportation.
However,
make sure you have the right amount of coverage for your family’s
needs. While most states only require a minimum of liability
coverage, additional protection might include collision or
comprehensive coverage, as well as roadside assistance, towing,
accident forgiveness, or rental reimbursement. All of these are able
to protect your budget as well as help your family when in tough
driving situations.
3.
Mortgage Protection Insurance
Mortgage
protection insurance is appropriate if you own your house and have an
outstanding mortgage against it.
Mortgage
protection insurance works much like a life insurance policy, except
it's designed specifically for your mortgage. In the event that you
pass away during the policy's coverage period, mortgage protection
insurance pays off the remainder of your mortgage. The coverage
period lasts until your mortgage is paid in full, and some policies
also cover long-term disability.
Without
other financial resources, this can become one of the most important
insurance coverages you have if you pass away or become disabled. Not
only does it provide financially for your family, but paying off your
home mortgage has great emotional value too. The action ensures that
your new family can stay in the home they love and cherish.
For
help finding mortgage
protection insurance and
these other coverages, contact the experienced team at Harr &
Associates Insurance, Inc.
