A WILL:

If you have a baby you need a will for sure. This is the ONE & ONLY way you can be sure that your child has the guardian of your choice. If something happened to you and your partner you want to be sure that the person of your choice raises your child and is allotted the assets of your choice. Most books covering will creation suggest choosing a first, second, and third choice for guardians. Also it’s best, even if you’re married, to make two wills, one each, rather than a collective will because if one of you dies, the other partner can’t then change the will.

MORE LIFE INSURANCE:

If you don’t have life insurance, you’ll need some now that you have a baby. If you already have life insurance, make sure you have enough. Many employee policies offer too little coverage. Term insurance is fairly simple to set up, doesn’t cost much, and basically covers income replacement for your family if you die. Most books note that you should try and purchase coverage that amounts to about 5 to 10 times the individuals yearly income.

Also, when it comes to life insurance don’t forget to cover a stay-at-home-parent. While this parent doesn’t work, they actually do highly contribute to the lifestyle your family is used to. For example, say you homeschool because you’re not down with school. If the SAHP dies, you’d likely want enough money to pay for a private free school or something other than public. Plus there is after school care to consider and all sorts of other issues.

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Post from: Thrifty Mommy

In many more words, here’s the problem with baby life insurance…

According to Smart Money and Consumer Reports life insurance for a newborn makes little to no financial sense unless your little one happens to be the sole bread winner in the family. Obviously this is rare unless your tot is big time Hollywood, so skip that insurance.

In the Smart Money piece, an actuary with the consumer advocacy group Consumer Federation of America, notes that baby life insurance is not only unnecessary but that, “It’s never a good idea.“

Why you don’t need baby life insurance:

The main reason you don’t need baby insurance is because your money is more useful when spent in other ways. Better things to spend your cash on includes issues like a 401k, college funds, retirement funds, or even basics like groceries or savings.

Your insurance and your partner’s insurance is far more important than baby insurance. Life insurance only does one thing, it protects and provides for those left behind when someone dies. As noted above, unless your child is making bank for the family somehow, you don’t need the protection if your child dies.

Some parents think, “I should get that insurance, in case my child can’t get any later” however, it’s extremely rare that a young adult would be turned down for life insurance.

It is tempting…

When my son Cedar was about six years old he told me this; “For my own personal security and smart peas of mind (yes he did say peas) I should have life insurance…. and bonus, it will double by the time I’m 21! CAN we get some?!” Um… if the insurance companies can sell something as non-flashy, non-toy-like, and boring to a six year old, then places like Gerber Life are doing a kick butt job advertising this stuff, but honestly you really don’t need to waste your money on it.

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Post from: Thrifty Mommy