Having a baby? Four ways to protect your financial future

Having a new baby is an exciting time, and it can also be a good time to protect your family’s financial future. 

If you’re down to one income for a few months or years, you may be running a ruler over every line in your budget to work out what you should cut.

But while money might be a little tighter than normal as you juggle baby expenses, it’s important not to cut off your insurance if you can avoid it.

Here are some types of insurance that are extra important if your family is growing.

Income protection

If you have people depending on the money you’re earning, you probably already know how important it is to keep that flow of income coming in.

Depending on your circumstances, income protection can make all the difference, because it can help you keep paying the bills if you’re off work with an illness or serious injury. Remember, ACC won’t cover time off work unless it’s an accident.

Income protection can be a good way to take a “what if” off your mind. We can help you work out what’s the most appropriate solution for your family.

Trauma insurance

While income protection covers you if you’re unable to work for a period of time after your wait period, you don’t need to be off work for trauma insurance to pay out.

Trauma insurance pays out a lump sum if you suffer one of a defined range of serious health conditions, including (but not limited to) cancer, heart attack, and stroke. Covered conditions vary depending on the provider, but usually a trauma insurance policy covers around 40 different medical events.  

This can also be really useful in a family where one parent is not working. Even though they might not be earning an income, not having them available as they normally are inside the home can be really expensive. Would your family need to pay for childcare or cleaning, for example?

Importantly, you can use a trauma insurance pay-out as you wish: to cover everyday costs, pay off personal debt, pay down your mortgage, or even put your work life on hold for a while and spend some quality time with your loved ones.

Health insurance

Health insurance is designed to give you faster access to private treatment and diagnosis, as well as – in certain cases – unfunded cancer medications.

As a parent, having health cover can give you the peace of mind that, should something happen to you, it won’t impact on your family budget. Plus, health cover can help you get back on your feet faster. 

Lastly, you may consider getting health insurance for your child as well. If you sign your kids up for health insurance when they are small, and they are less likely to have developed pre-existing medical conditions, you’ll know they are covered for anything that comes their way in life. Insurance for children is often really cost-effective, too. 

Life insurance

No one likes to think about a scenario where they’re no longer around, especially when you’ve got a brand-new baby to think about. But life insurance can be vital for many families. 

Your loved ones can use the lump sum to cover the cost of your children’s education, maybe, or support for your partner to keep the household going. Plus, you might also want to leave a set amount in your Will to help your kids get started in life.

Like to talk?

Personal insurance is designed to protect you financially from life’s unexpected events, and it can be an important conversation to have when you’re planning an exciting new future.

Get in touch. We can talk about protecting the things you value most, and making sure that you are able to fulfil the dreams you have for your new family.

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.