Studies show that 54% of the US population applied for life insurance. This proves how much people value financial security and a safe future. Insurance can help your financial burdens and reduce stress from potential issues that may arise.
It opens investment opportunities, protects your income, and provides tax benefits. As a new parent, you must start paying for insurance as soon as possible. It protects you and your family from financial constraints caused by unforeseen events.
The earlier you get insured, the higher the rate you can receive. Continue reading to find out the different types of insurance a new parent must consider.
1. Health Insurance
The cost of health care in the US increases every year. Many opt out of hospitals and instead treat their illnesses on their own to avoid the hefty bill. However, this isn’t always an option for parents.
Health insurance can help you pay for your hospital bills. Some of the coverage is emergency, maternity, and laboratory services. There are some limitations, including cosmetic procedures, off-label prescriptions, and more.
The insurance company can refund the expenses paid by the insured. They can make direct payments to the health care provider as well. Family health insurance guarantees that everyone receives the best medical treatment.
The company deducts the cost of the health insurance premium from the policyholder. The insurer can add people to their policy depending on their relationship. With this, you can opt for health insurance that secures your whole family.
2. Disability Insurance
Disability insurance provides an income if you become unable to work due to a condition. It can pay you the benefit every month, replacing a part of your earnings. There are different types of disability insurance you can get: short-term and long-term.
The short-term insurance can last for several months, and you can get the benefits on the spot. It often takes 1% to 3% of your annual income. However, it can differ depending on your occupation and age.
You can use short-term insurance as a new parent to supplement your maternity leave. Check the maternity leave plans your company offers if it includes paid leave of absence. The insurance can cover 80% of your income if they don’t support paid LOA.
Long-term disability insurance provides extensive support. You can start receiving pay months after suffering from a condition. You can enjoy its benefits for years or until the disability disappears.
Use both insurances to cover expenses. The short-term can handle cost until the long-term takes effect.
3. Life Insurance
Life insurance provides financial protection to your beneficiaries once you perish. They can use the benefits to support their needs until they can work for themselves.
You can secure lower premiums and higher rates for your policy if you start now. You may also opt for either term life or permanent life.
Term life insurance allows you to enjoy the benefits for a definite number of years. Term life insurance promotes affordability while providing long-term financial support.
Permanent life applies for the entire lifetime, unless they stop paying. With its lasting duration, expect a higher premium rate for the insurance. You can click here to learn more about your options.
The Types of Insurance a New Parent Needs
As a new parent, you face new responsibilities when caring for your family. If you want to keep your family’s future safe, consider these types of family insurance.
Did you find this article beneficial? If so, check out our other blog posts for more family health tips.