Are you expecting to become a parent soon? If so, there are some important things you should be doing to prepare yourself. First and foremost, get as much sleep as you can! Secondly, sleep some more! In all seriousness, having a baby is one of life’s most magical moments, and being a parent can be one of the most fulfilling jobs you will ever have. It is also a huge responsibility, and there are many parts of your life that are about to change. With so many new things to plan for and prioritize, it can be overwhelming at times, and some things may slip your mind, such as insurance. So, we decided to create a reminder of things regarding insurance and a few others that you should be doing to get ready for this next step in your life.
Before the Baby
Before your new family member arrives, there are a few things to consider:
1. Selecting a doctor or midwife to perform the birth. This is an important step because you want to be as comfortable as possible during the delivery. It can be a very intimate and let’s be honest, painful experience, so being as comfortable as possible with whomever is performing the procedure will aid in your experience.
2. Figure out how much of the delivery will be covered by your insurance. Having a baby is expensive. Many times, it can be the one of the most expensive health related events that you will experience. If you are planning on starting a family, it is a clever idea to contact your insurance carrier, as well as review your policy documents to prepare for what the costs will be. Similarly, if you have just become pregnant, it may be a good idea to let your insurance carrier know you are having a baby, and figuring out the costs involved as well as what the next step will be.
3. Select a pediatrician that is in network. Having a pediatrician that you trust and you are comfortable with should be a top priority. Also, it’s important to choose one that is in your insurance network. Children are in and out of the doctor when they are young, partly because their immune systems are still developing, but also because there are many check-ups and immunizations they must receive. Selecting an out of network provider is your choice, but it will certainly cost you more.
After the Baby Arrives
Once your newborn has arrived, there are some tasks that should be completed, as well as some things to know that may help you save a few bucks.
1. Add your baby to your health insurance plan. You would think that after all the medical bills and doctor visits for your pregnancy, that your insurance company would know to add your new baby to your plan, however in most cases you need to contact them to do so. The good news is under the Affordable Care Act, having a child is one of the qualifying life events that can afford you the opportunity to get an ACA compliant plan, if you do not have coverage already.
2. Claim tax credit. For those that don’t know, the IRS allows taxpayers to claim the Child Tax Credit for children under the age of 17 if your adjusted gross income falls below a certain amount. What this means is a potential reduction in your premium if you qualify and take advantage of the tax credits on the marketplace plans. Also, you now have a dependent that you can claim on your taxes which may also give you some tax breaks or returns. Don’t forget to update your W4!
Preparing for the Future
Having a child is a huge responsibility, both financially and time wise. A child can also give you a reason to start planning the future if you haven’t already.
1. Purchase a life insurance policy. Having life insurance should be a top priority when becoming a parent. Making sure your child will be taken care of financially should be a responsibility all parents take advantage of. After all, life is fragile, and can be taken from you without a moment’s notice. If something were to ever happen to you what would happen to your child? That’s a question every parent should be able to answer.
2. Make a will. Making a will can fall in the same uncomfortable category as life insurance. However, when a child is in the picture, it should be a must. If there is anything you want to leave to your child, or things you want others to have instead of your child, a will is the way to go. It must be obeyed by law, so be sure to name a trustee that is close and who you trust to manage any property on behalf of your minor children.
3. Start saving for college/university. A four-year degree is getting more and more expensive these days, and it is almost a necessity to have secondary education to land a good job. Our advice, start saving now, or as early as possible. There are a plethora of different saving options you can use from savings bonds, to different savings accounts, even prepaid state college/university plans.
MHG is here to assist you and offer any advice and help we can in this exciting time in your life. If you are interested in purchasing health insurance, life insurance, or have any questions please contact us today at 954 828 1819 or visit mhginsurance.com. We have the insurance specialists to guide and assist you in finding the best insurance options for you, your family, and loved ones.