Protect Your Baby: 5 Financial Tasks To Complete After Birth

Becoming a new parent is one of the most exciting events in your life, but it comes with many major responsibilities. There are plenty of things you need to consider when you introduce a new child into your family and here are some financial considerations to be mindful of.

1. Quote Life Insurance

Although it’s unpleasant to think you might not be around to take care of your child one day, it’s important to plan for everything. Most new parents will purchase term life insurance because it’s usually the least expensive option and you often have more flexibility to update your coverage as your family’s needs change.

2. Adjust Your W-4

Whenever you have a major personal life change, you should update your W-4. Of course, this includes having a child. A new baby can be a major tax event for you. You can claim an additional allowance for a dependent and might even qualify for the Child Tax Credit, Child Care Tax Credit or other tax credits. These credits can allow you to reduce your withholding to account for the added tax benefits.

3. Open A College Savings Account

Start planning for your child’s future immediately and open a college savings account. It’s never too early to start setting aside funds for your son or daughter’s college education. Plus, the earlier you start saving, the easier things will be when it comes for your child to apply to and attend college.

4. Add Your Baby To Your Health Insurance

Most health insurance companies will cover costs associated with your baby as long as you add the baby to your existing policy within 30 days of giving birth. Check with your provider to find out what is required to add the child to your plan. Once you add your baby to your health insurance plan, be prepared to see an increase in premiums.

5. Estate Planning

If something were to ever happen to you, you need to know that your child will be raised and provided for. One way to ensure this is to make a will that includes who should take care of your child and their finances. In addition, check your retirement accounts. For retirement accounts, you can usually name beneficiaries when you open them. Update them after giving birth in order to reflect that your child is a beneficiary.

To learn more about how life insurance can help you with the arrival of your newborn, or if you just want a quick quote, visit www.goldcoastlifeinsurance.com or give us a call at 800-301-8113.