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Protecting What Matters Most


Preparing Your Insurance Plan for a New Baby: Here’s What You Need to Know


The celebration of life – there is nothing more exciting than learning you and your partner are soon expecting a bundle of joy. There will be a whirlwind of tasks to complete before the arrival date, from preparing the new nursery and purchasing a variety of essentials to attending regular doctor visits and planning a shower. In the midst of all of these responsibilities, don’t forget to update your financial plan by bringing your current insurance policies up-to-date.

With each new baby, comes a long-term financial commitment. To alleviate stress at a later time, plan ahead by ensuring you have the correct insurance plans you and your family need. Let’s take a closer look at a few insurance policies you should have in place before the big day arrives:

  • Life Insurance – Life insurance should be on the minds of all expecting parents. These policies ensure that should anything happen, there are enough financial resources available to care for the child, the surviving partner/parent, and help alleviate financial strain. For women, the topic of life insurance is especially important. Some life insurance companies consider insuring a pregnant woman a risky move, therefore it may be a good idea to purchase a life insurance plan before you become pregnant. If you are able to secure a policy while expecting, remember you will most likely be charged a higher rate.

    For Texas physicians, life insurance is one crucial aspect of a solid financial plan. Because your income, assets and standard of living are above average, choosing the right life insurance policy will provide security for your family should anything happen to you. If cost is a concern to you, consider choosing a term life insurance plan, as these tend to be more affordable than permanent and last for a preset number of years. Speak with an insurance advisor about how to determine the best amount and term length (10, 20 or 30 years) for your family’s needs.

  • Health Insurance – For expecting women, having quality health insurance is vital. Before the adoption of the Affordable Healthcare Act, it was reported that only 13% of insurance policies included maternity coverage. Luckily, now that the Affordable Healthcare Act is in full-swing, it is now mandatory that all individual insurance plans include pregnancy, labor & delivery and newborn care. This means that expecting mothers can now have cost-effective healthcare during and after their pregnancy. However, even though all insurance companies are required to offer maternity coverage, there are still many different levels to choose from. Therefore, it’s important to look at what each insurance plan offers.

    Here’s a few services to look for:

    • Pre-pregnancy checkups

    • Prenatal physician visits

    • Neonatal tests and screenings

    • Prenatal vitamins

    • Cost of hospitalization during birth, plus room, board and any incidentals

    • Delivery costs, whether traditional or C-section

    • Physician and surgeon fees, surgical expenses, etc.

    • Fees related to emergency procedures during birth

    • Sick and well-baby care

  • Disability Insurance – This is another topic not many people want to think about, however, long-term disability insurance is a must have when planning to have a baby. The fact is, fewer than half of American workers have discussed disability planning, yet it is more likely for workers to become disabled than die before reaching retirement age. In addition, the average individual disability claim lasts 31.6 months and one in eight workers will be disabled for five years or more during their working careers.

    Does your family have money set aside for unexpected emergencies? Can you cover living expenses for several years should anything happen? If you are a Texas physician, and the primary wage earner, these are crucial questions to consider when deciding whether or not to purchase long-term disability insurance. This policy can provide for your family and alleviate stress if you become disabled and cannot work.

    If you already have long-term disability insurance, check with an experienced provider to determine if your current policy amount is enough. When expecting a new baby, monthly benefit amounts may need to be increased. If you only have an employer-provided plan, consider purchasing individual coverage, as employer plans tend to cover just 50-60% of your income, the benefit is taxable if the employer pays the premium, and it is not portable.

One of the best ways to prepare for a new baby is to ensure all of your insurance policies are up-to-date, with the right coverage and benefit amounts. Be sure to take action as quickly as you can, as some types of insurance coverage are not attainable once a child is already on the way.

To learn more about preparing your insurance plans for a new baby, feel free to reach out to us. Our skilled advisors have decades of experience helping Texas physicians secure the insurance they need at all stages of life.

Speak with a TMA Insurance Trust Advisor:

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