Welcoming a little one? Make room for insurance

Do you have a baby on the way or a newborn at home? Congratulations! As anyone has probably already told you, it’s a wonderful – and huge – change in your life.

From the moment a baby enters your world, they turn your priorities upside down. Things you’ve always worried about take the back seat, as the long-haul journey of parenthood begins.

If insurance hasn’t been a priority in the past – now’s a good time to start exploring your options with an insurance adviser - because with little feet comes big responsibility! To help get you started, here are some common solutions to protect your growing family, now and well into the future.

Life Insurance
What would happen if you were no longer around?

This is a scenario nobody (especially parents) likes to think about. But when it comes to protecting your family’s future, life insurance is a good place to start.

If you passed away, how would your family cope financially? Would they be able to meet everyday costs and longer-term financial commitments (e.g., personal debt, a mortgage, etc.)?

Life insurance can take care of your loved ones, by paying out a lump-sum amount that they can use however they need. This may include setting aside a fund to pay for your child’s tertiary education when the time comes.

And here’s another quick tip: life insurance isn’t just for the breadwinner. While a stay-at-home parent may not earn an income, they contribute to the household in countless ways, so getting life cover for them too can be a good idea.

Income Protection
What would happen if your income stopped due to illness or injury?

Here’s another “what-if” that’s important to consider, because the financial impact could be huge for your family.

Unfortunately, unless it’s an accident, ACC won’t cover time off work. If your growing family depends on your income to maintain their way of life and plan for future goals – how would they cope if you were unable to work and provide?

Income protection insurance is designed to replace up to 75 per cent of your gross income, should an illness or injury put you off work for a while. And you can tailor your policy to suit your needs and budget. All you have to do is select the wait time (how long before the cover starts to pay out), benefit (payment period), and percentage of income you’d like to cover.

Health insurance
Want to get back on your feet faster?

Being a parent is a 24/7 job, with no ‘sick leave’. So, getting better quickly and being able to take care of your family is important.
While our free public healthcare does a great job at treating urgent medical issues, wait times for non-urgent diagnostic tests and treatments can be long and frustrating for patients.

That’s where health insurance can step in, by giving you faster access to private treatment and diagnosis. Depending on the policy you choose, you may also have some level of cover for non-Pharmac funded medications (like life-extending cancer treatments), which would otherwise cost hundreds or even thousands.

Having health cover can make all the difference in fast-tracking your recovery, without putting a dent on your budget.

Trauma insurance
What would happen if you fell seriously ill?

Last, but certainly not least, trauma insurance is also worth considering for parents. As its other name ‘critical illness cover’ aptly suggests, this option is designed to provide a lump-sum amount if you’re diagnosed with one of 40+ serious medical conditions listed in the policy.

No trauma policy is created equal, and covered conditions vary from provider to provider, but generally speaking, you’ll find that common illnesses like cancer, stroke and heart attacks are included. Your insurance adviser can explain the different policies available and help you determine the most appropriate option for you and your family.

What’s more, you have total flexibility as to how the lump-sum payout can be spent. Many people use it to put work on hold and afford quality time with the family. Others spend part of it on premium medical treatments, and the rest on day-to-day costs or a holiday with their loved ones. The choice is entirely yours.

Need help navigating your options?

No one knows what the future will bring. But as your parenthood journey begins, now is a good time to prepare for the many “what-ifs” that life may throw your way.

Not sure which cover is right for you, or how much of it you need? There’s expert help available. Insurance advisers specialise in helping Kiwi families like yours protect their financial future from as many angles as possible.

And over time, as your family grows and your children get older, your adviser will be there to review your cover on a regular basis and ensure it’s still in line with your goals.

Click here to find a financial adviser specialised in Personal Risk near you today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.