The Basic Guide to Financial Planning for New Parents

Welcoming the birth of your child is a momentous affair, but are you financially ready for it?

FSM Jul 26, 2018 4405

 

Overjoyed, scared, exhilarated, worried - a flurry of emotions may be felt the first time you become a parent. This arrival of your new-born signals the start of a new life stage with new responsibilities beckoning. Moreover, with a little one now financially dependent on you, it amplifies the need to plan to secure your child's financial future. In this article, we suggest 4 things you should do after the birth of your child.

 

#1 Update your benefits

One of the first things you should do is to update your insurance benefits to include your new-born. This could either be for your personal insurance or your company's health benefits. Doing this as soon as possible ensures that you do not miss the deadline for applications thus allowing your child to receive coverage should he/she fall sick or require medical attention.

 

#2 Insurance for your new-born

With new-borns generally free from any health issues, getting an insurance policy at an early age prevents any exclusion from being tied to his/her policy.

Children in their quest to explore their surroundings, do get injured from time to time, they tend to also fall sick easily, and in some situations, may experience serious or chronic conditions. Getting insurance coverage as early as possible helps you to seek appropriate treatment for your child without being overburdened by costs.

Premiums are also affordable when you buy an insurance policy for your child when they are younger as compared to buying one when they are older.

 

#3 Start saving for your child

It is never too early to start saving for your child's future as an earlier start allows you to be better equipped to provide for his/her future education. Adequate planning can give your child a head start by ensuring that he/she does not miss out on future opportunities due to financial constraints.

To start saving for your child, consider setting aside fixed amounts at regular intervals. This could then be put into a savings plan, investments or children/education oriented endowments to grow your wealth.

 

#4 Plan for emergencies

Would you be financially ready if a disaster were to strike? With children more prone to accidents and illnesses, having an emergency fund could provide a financial safety net for any unexpected expenses.

Additionally, you may also wish to review your own coverage to ensure that it will be sufficient for your needs. This includes having adequate life insurance to safeguard the interests of your child, and allow him/her to be taken care of if anything untoward were to occur. Income replacement plans such as disability or critical illness policies should also be considered as your financial commitment is now higher with a child reliant on you.

 



You may be interested in:


Insurance, Is It Always The More The Merrier?

How To Protect Yourself From Cervical Cancer

Will You Be 60, Retired and Broke?

Your Guide to Getting Your First Insurance Plan

The Devastating Truth About Life After You're Gone

The Secret to Financial Planning (Pst, Coffee Helps!)

How Much Should You Have In Your Emergency Stash?

You Might be in Massive Trouble, Without These 3 Insurance Policies

How Often Should I Review My Insurance Policies?

Why Cheapest Isn't The Best (Policy)

Should You Buy Insurance for Your Child? Here's 3 Quick Tips!

 

 

Protect yourself and your loved ones now and enjoy savings at FSM INSURANCE!


All materials and contents found in this Site are strictly for information purposes only and should not be considered as an offer, or solicitation, to deal in any of the funds or products found in this Site. While iFAST Capital Sdn. Bhd. (“IFCSB”) has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies and typographical errors. Any opinion or estimate contained in this Site is made on a general basis and does not take into account the specific objective, financial situation or particular need of any specific person or group of persons. You should consider carefully if the products you are going to purchase into are suitable for your financial goals and objectives, risk tolerance and other personal circumstances. You should also consider the fees and charges involved. If you are uncertain about the suitability of the insurance product, please seek advice from a financial adviser representative, before making a decision to purchase the insurance product. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.