We’re expecting a baby
Are you going to be giving birth soon? Here are some things to consider that can protect your family from what you’re not expecting.
Rethink your insurance coverage
When baby comes, you’re sure to be overcome with joy. So now’s the time to think about what you need to enjoy peace of mind as well, and how you can give your family the security it deserves.
• Life insurance: Life insurance will enable you to ensure your family’s financial security if the unthinkable were to happen. If you already have life insurance, consider boosting your existing coverage to help your family sidestep any financial worries down the line.
• Disability insurance: If you or your spouse were to become disabled following an accident or illness, disability insurance can provide an income to replace your salary, helping you keep your family ticking over.
• Critical illness insurance: Paid out as a lump sum, this insurance can help you cover your financial commitments as well as the costs related to your health condition, allowing you to focus on getting better.
• Group insurance: If you are enrolled in a group insurance plan, you may want to extend coverage to your spouse and children, if you haven’t already. Keep your group policyholder abreast of your new situation so the necessary changes can be made to your coverage and your beneficiary designations can be adjusted if need be.
Insure your child
• Life insurance: Take advantage of your child’s young age and clean bill of health to secure life insurance that will follow him or her into adulthood and potentially for life. Give the gift of whole life insurance.
• Critical illness insurance: Paid out as a lump sum, critical illness insurance could enable you to step aside from your job for a while to focus on helping your child get better if he or she were to fall seriously ill.
• Accident insurance: Accidents don’t just happen to adults. Taking out accident insurance for your newborn can protect you against the unexpected and cover the costs—medical or otherwise—that might go along with an accidental injury or death.
Save for your child’s education
If you want to set money aside to enable your child to pursue higher education, the registered education savings plan (RESP) is the financial tool you’re looking for. Investment earnings accumulate tax-free and can be used to cover tuition fees and other expenses related to your child’s education.