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Having a Child: How Does This Impact Your Insurance?



For many, insurance payments are a large chunk of change every month. Your homeowners insurance, auto insurance, and health insurance can all add up. How will an extra addition to your family impact these insurance policies?



You May Be Able to Get a Discount on Auto Insurance

Some auto insurance companies offer discounts for having a child, but not all. Their rationale is simple: you're more likely to be cautious about driving when you have a child in your car. But you need to consider something else. Many people buy a new car when they have a child because newer cars are safer.

Before you purchase a new car, call your insurance company to find out the rates. Some cars will increase your insurance more than others. Your insurance agent will be able to give you information that you can use to factor in your new budget.



Your Home Insurance May Need to be Revised

Your homeowners insurance certainly isn't going to charge you more for having a child. However, you should still review your policy. You've probably invested a lot of money into childcare items for your home. You may have renovated your nursery, bought an expensive crib, or just invested a lot in formative and educational toys.


These items will need to be tallied up and included in your homeowner's inventory. Otherwise, if something happens such as a fire, you may not be covered for the replacement of these items.


Consider also adding coverage for accidents. Babies, especially when crawling and walking, can get into a lot of things. They can cause damage to furniture or damage to carpeting. If there are expensive electronics to break, adding coverage never hurts.



You Should Change Your Life Insurance Policy

One of the first things that many parents should do is change their life insurance policy. Not only should you increase your life insurance policy to compensate for the new size of your family, but you should also make sure that your child is listed as a beneficiary. This will make sure that your child will get a certain amount of your life insurance proceeds.

Life insurance isn't a part of your will, nor is it a part of your estate or your probate. The money gets paid out directly to beneficiaries. Being clear about beneficiaries makes the payouts more direct. Rather than your spouse getting the life insurance and then having to direct it to your child, the money will just go to your child directly.

You need to keep your life insurance updated. If your spouse passes on, but you don't update your beneficiaries, then when you pass, the funds will still be disbursed to their estate. Once these funds are disbursed, they could be eaten up by any of their debts before the money is passed on to your child.



You Will Need to Change Your Life Insurance

If you get life insurance through your employer, you'll have to notify human resources regarding your life change. You will likely see your insurance premiums going up. If you have insurance through the marketplace, don't wait to modify it. You can modify your insurance at any time for a qualifying life event, of which childbirth is one.


Insurance can be complicated to navigate, and many of your policies may be changing at the same time. A qualified professional can help. An insurance agent will go over your existing policies to find out how you can save money, as well as which policies need to be updated to make sure you have the coverage you need. Contact Gulf Coast Insurance today to find out more.

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