How to properly adjust insurance benefits with a baby on the way

While having a child clearly necessitates many changes to one's personal and professional life, one aspect that should not be forgotten is how to properly adjust insurance policies to ensure proper coverage. Because of that, the National Association of Insurance Commissioners NAIC) has released a list of tips to make sure that not only parents, but also the new addition to the family, are properly covered.

While having a child clearly necessitates many changes to one's personal and professional life, one aspect that should not be forgotten is how to properly adjust insurance policies to ensure proper coverage. Because of that, the National Association of Insurance Commissioners NAIC) has released a list of tips to make sure that not only parents, but also the new addition to the family, are properly covered.

After deciding which parent's health insurance policy offers better benefits for the lowest co-pay- including whether or not a flexible spending or health savings account is available to put aside pre-taxed money for health expenses- the NAIC recommends notifying the insurer as early as possible to meet all deadlines.

Regarding life insurance, the NAIC recommends taking out policies on both parents, even if one is a stay-at-home parent. It adds that a family should also determine what the child's care costs will be before taking out the policy.

Additionally, deciding between proper types of life insurance to take out is important. According to the NAIC, whole life insurance is more expensive but builds cash value and pays a death benefit, while term life insurance is less expensive for younger parents but gets more expensive as one ages and only offers death benefit protection during specific time periods.
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The NAIC also recommends adjusting auto insurance policies to increase liability insurance in case of an accident while carpooling with other children as well as properly adjusting any home insurance for any play areas such as a back yard with an umbrella policy if play items for the child are installed.

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Posted: August 4, 2009

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