This post is sponsored by BabbleBoxx.com on behalf of Nationwide
There is a lot to think about when you are on the path of parenthood. I’m not just talking about the new parent phase when you are planning nurseries and birth plans, what doctor to choose and if you are going back to work after the baby arrives. Now those are all important things and they take up a lot of head space during a time that your mind isn’t always your own. There are a few other important things that you need to be updating, financial things.
3 Important Out of the Box Things to Consider When Becoming a Parent: Legal Documents
Now that you are a parent consider updating your legal documents such as a will, advance directives and of course guardianship paperwork for your child(ren). Once these things are in place they are often forgotten. Anytime you have big changes in your life; such as a marriage, new baby or a change of jobs you should readdress these documents and make any updates needed. Along with making sure they are updated it’s important to let someone know where you have them stored or even to provide them with a copy for records.
3 Important Out of the Box Things to Consider When Becoming a Parent: Insurance Policies
I know that when I was young professional before getting married and having children, I didn’t put much thought into things like insurance policies. I had medical insurance through my company and a few other policies like short term disability and a small life insurance. I’ll admit that I remember signing all of these forms as a new employee but I never really knew what they were all about when it came to actually needing to use them or if they were sufficient for my family’s needs.
When I had my 1st child I was
older wiser. When we decided that I wouldn’t return to work full time we spent some time rethinking a lot of our financial decisions and one thing we moved forward on was obtaining our own life insurance policy. Did you know that most company provided life insurnace policies only pay out the equivilant to 1-2 years annual salary? That isn’t much considering the changes we’d just had in our lifestyle. We had a mortgage and a brand new baby and it seemed like the responsible thing to do. We wanted to protect our family and we knew that making sure that we were financially secure was a huge part of that.
Next to actually getting a life insurance policy the next important factor is making sure you purchase enough, think about the need to pay a mortgage, living expenses, funeral costs or even college expenses if something should happen to you. Often times families need 3x more than they originally thought. Something else to consider is that the cost of purchasing a life insurance policy increases as you get older. So there is no better time to purchase than now, and Nationwide will work with you to determine the amount that is right for your family.
3 Important Out of the Box Things to Consider When Becoming a Parent: College Savings
It’s hard to think 18 years down the road when you are snuggling that precious newborn baby, but let me tell you time is going to fly by. I remember when we called our financial institute to discuss the various types of college savings accounts we could not believe the estimated costs of college 18 years away. It is something you don’t want to be blind sided or not have prepared for. There are several different types of savings accounts and some vary by state or residency. Your financial institute can discuss with you the various kinds, answer your questions and help you make the best choice.
While these are all important decisions to address when you become a new parent, it is also important to readress them with the arrival of each addition to your family or majoy lifestyle change. Speaking with a adviser specializing in each topic is encouraged so that you can make all the best decisions for your family.