Got it Covered? Insurance Tips for Busy Co-Parents

As co-parents we all want what is best for our children and we make decisions based on that everyday. Who is going to care for the children while we work, where should they go to school and who is going to have them on certain holidays. All of these are very important but what needs to be added to the list is when are we as parents going to sit down and discuss our insurance needs. Sitting down with an insurance professional is especially beneficial when you are co-parenting so that both parents know they are on the same page and what is covered. Having an insurance plan also can help make sure that all of the decisions that you all make are continued no matter what the circumstances.

A priority for your insurance needs is to make sure you have adequate Life and Disability insurance. Life insurance pays your beneficiaries in the event of an untimely death and Disability insurance pays you if you are unable to work due to an illness or accident. Don’t assume that the coverage you have at work is sufficient. Having a policy independent of work can assure coverage regardless if you leave that employer, are laid off, start your own business or stay home with the children as long as the premium is paid. Also the earlier you purchase your policy the better rate you are assured to pay. What can make insurance expensive is waiting.

What are the types of Life insurance policies to consider? Term or temporary insurance and permanent insurance. These can be used to address short and long term needs. Term insurance is great for short term needs. You can purchase term insurance for a certain number of years such as the amount of time your child will be a minor. Term insurance is generally less expensive and allows you to buy more coverage. After that policy period has finished, you no longer have life insurance coverage unless you convert it to a permanent policy or purchase more term insurance. Remember however you will be older if you have to purchase more and it will be more expensive than buying what’s needed in the beginning. Permanent life insurance includes whole, universal and variable life. This insurance is meant to last your entire life so you will always have an estate for your family. This type of policy also builds cash value and can give you the ability to borrow or make withdrawals. Permanent plans have the ability to combine life insurance, savings and investments. Remember the amount of time that this money will need to provide for. Given this, a good rule of thumb is to have 7-10 times your annual income of coverage.

Disability insurance is just as important as life insurance. If you don’t know how you would pay your rent, mortgage, bills and child support if you could not work because of an illness or injury then you need disability insurance. Don’t assume that you are covered by workers compensation because most disabilities occur outside of work. Also many are denied social security disability benefits so it can’t be counted on. Disability insurance can be very affordable for every budget. The key is to get coverage before there is an incident. To determine the amount you need, total your monthly expenses and number of months you could go with out a paycheck to determine your policy amount and waiting period.

As an excited expectant mom who will be co-parenting, I understand the importance and difficulty of having good communication to make sure our families are taken care of. As an insurance agent I see everyday, however, the benefits of making it happen.