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.
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