Two pre-baby money issues to consider
May 2, 2009 by Jennifer Chait
Filed under family, finances
If you’re expecting you need to consider a lot of money issues, from health insurance, to how much diapers will cost, to maternity leave, and more. BUT there are two extra important money issues you need to consider either before your baby arrives or very soon after.
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.
[image via stock.xchng]
