Insurance helps us cover unexpected payments when something goes awry. While most of us hope we never need to take advantage of an insurance policy, having the right insurance policies during various walks of life can literally be life saving.
But knowing what kind of insurance is necessary isn’t always clear — your insurance needs typically shift as your life changes. Let’s take a look at some of the major life changes that may indicate you need to purchase a new insurance plan.
When you’re a single lady, you only have yourself to worry about. You’re the only one relying on your income, so if something happens to you, a life insurance policy wouldn’t really be helpful. But once you’re married, that can change.
If your new spouse relies on your income to make mortgage payments or pay the bills, then you may want to consider purchasing a life insurance policy. A life insurance policy can ensure your spouse is financially taken care of if an accident occurs and you’re no longer there to bring home your half of the communal income.
You’ll want to consider the other insurance policies the two of you had separately but now can be combined as one. Look into car insurance, renters or homeowner insurance and even health insurance to see which plan or policy makes the most financial sense. Simply cancel the policy you choose not to continue with.
Marriage will also mean you need to update or create a will. While most states pass belongings to the spouse, you’ll want to ensure each item is accounted for and given to the right person. Drafting a will that states what you own, where it should go and who is responsible for it can help save your loved ones time and stress.
Buying a Home
Making the move from a renter to an owner is huge. If you’re taking the plunge and buying a house of your own, be sure it’s adequately protected. Homeowner’s insurance is much different than renter’s insurance in that it covers a lot more damages, but it can also be more expensive. If you have renter’s insurance, cancel that plan and open a new homeowner’s insurance plan.
If you’re taking out a mortgage for the home, consider a life insurance policy that covers the cost of your debt. Whether you’re purchasing the house with a spouse or partner or buying alone, someone will be on the hook for paying that debt. A life insurance policy can ensure the cost is covered.
Planning for a Baby
If you’re ready to have a baby, consider the various ways that it could impact your life. First, you want to ensure you’re in good health and that your health insurance policy covers the needs of having a baby. Most health insurance policies won’t cover all the costs associated with having a baby, but knowing your insurance plan is important for budgeting purposes.
Before you become pregnant, consider purchasing a short-term disability insurance plan that covers pregnancy. A short-term disability insurance plan will compensate you if you’re forced to take additional time off work because of the pregnancy.
Because it may be difficult for you to secure this kind of insurance plan after you’ve already become pregnant, be sure to look into it before you conceive.
Growing Your Family
Once your baby is ready to come into the world, you’ll need to make additional insurance changes. The most important factor is getting the baby on your health insurance policy. Contact your health insurance provider within the first few weeks of bringing baby home to let them know you have a new family member to add to the plan.
You will also need to update your life insurance policy to consider the new baby who relies on your income to live. You will want to up your life insurance policy to consider the additional cost of raising a child, sending them to school and other expenses that may be difficult for someone to manage if something should happen to you.
Having a baby also means you’ll need to update your will again. Include the child as a beneficiary of your assets and belongings, specifically designating what you would like to go to your child. With each child you have, you’ll need to make these same insurance and will changes.
These major life events will give you the ability to enroll in certain insurance plans outside the open enrollment period. For example, if you would like to get on your spouse’s health insurance plan or you would like to add your baby to your health insurance plan, you don’t need to wait until the open enrollment period happens. You can make the changes at any time.
Having the right insurance policy can ensure you and your loved ones are protected if an accident happens. With each major life change you go through, make sure you know which important insurance changes you need to make.