As my daughter’s name was announced at her high school graduation, I felt like I was living that Subaru commercial which shows a dad giving driving instructions to a little girl behind the wheel of a car. The camera goes back and forth between the dad and the little girl. The last time the camera shows the girl, however, the little girl is an adult. Gets me every time.
So many people said not to blink. So many people said to enjoy every moment. Time, however, has a funny way of playing tricks on us so that we are never quite emotionally ready for the changes that come with having children. The best that we can do is to make sure we respond to the changes, and prepare accordingly. Once prepared, we need to review and update. Insurance is definitely one of those things that needs to be reviewed and updated. I hope you find this week’s article useful!
Growing Family? Time to Audit Your Insurance Policies
As your family size grows, there is lots to prepare for and consider. Welcoming a new family member can be a joyous occasion, and requires some planning. Adding a new family member can affect your finances and create a need for more protections. Reassessing your insurance coverage might not be at the top of your list, but policies should always be audited when changes in your family life occur to ensure your coverage will adequately protect your growing family. Remember this: insurance says I love you to the people you love.
It’s always a good idea to increase your life insurance coverage whenever you add a new member to your family. Life insurance can provide your loved ones with valuable financial support when you die. Determining the right type and amount of life insurance coverage takes assessing your current financial standing and the future financial needs of your family. As your family grows, future financial needs will as well. Think long-term, take into account inflation and any expected big-ticket investments, such as education over the years, plus the needs of a single parent or named legal guardians to care for your children, if you pass on while they are unable to care for themselves.
And always remember that you can name legal guardians to care for the education and health of your children, while directing your insurance to pay to a trust for the benefit of your children, with a separate trustee named to care for the finances. This Trustee would work together with your named guardians to make decisions in the best interest of your children, until they could receive and control the inheritance themselves.
For some, a bigger family means a bigger home. If you are purchasing a new home or building a new addition to your current home, it’s a good idea to reevaluate your homeowner’s policy. Key factors to look for include whether your existing policy has sufficient coverage to repair or replace your home and whether your policy would replace your belongings if necessary. Also, consider adding riders to your existing policy to cover things like damage from natural disasters, which standard policies typically don’t cover.
You might need a larger or safer car to meet the needs of your growing family. A new car can affect your auto insurance rates, so check with your provider before you make a new purchase
to see how your rates may change. Also, some auto insurance providers offer policy discounts for married couples, so talk to your agent about the discounts you may qualify for.
Parents want to protect their family from the unexpected. Insurance can help provide this protection, but you need to tailor your policies to meet your family’s needs. Periodically review your insurance policies as your family grows to make sure you have optimal protection for what you value most. And, use us to support you.
If you’re growing your family and want to protect your loved ones, consider sitting down with us. As your Personal Family Lawyer®, we can walk you through creating a comprehensive Kids Protection Plan®. Before the session, we’ll send you a Family Wealth Inventory and Assessment that will get you thinking about what you own, what matters most to you, and how you want to protect your growing family.
The milestones come quickly once children graduate from high school and enter into the big, wide world away from home. As your family navigates these significant rites of passage, be sure to consult us as your Personal Family Lawyer® to determine the steps necessary to ensure excellent communication and peace of mind when a medical emergency arises. Consider including your young adult children in the process. We’re here to help your family establish the legal and medical protections you all need to live the lives you desire. In fact, this month, when you schedule and come in for a Family Wealth Planning Session, we will create no-charge legal documents for your young adult child, as our gift to you. Call our office and mention the “June graduation special” to get scheduled.
Call our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge in addition to the no-charge legal documents for your young adult child .