Making sure you’re covered if something happens

When you have a child who is dependent on you, preparing for the unexpected is more important than ever. Plan ahead with the following steps to help ensure your child is cared for—and help you sleep better at night.

Review your insurance coverage.

As your family grows, so do your insurance needs. To make sure you’re adequately covered:

• Notify your health insurance provider of your new dependent. Revisit your options to make sure you get the most cost-effective combination of deductibles and coverage.
• Consider purchasing life insurance in case something happens to you. You’ll want at least enough to pay off your mortgage and debts and provide for your child’s education.
• Make sure you have disability insurance to replace your income in the event of an illness. Consider an individual policy to supplement what might be offered by your employer or your state.

Create or update your estate plan.

An estate plan isn’t just about leaving money to your kids. It’s also about appointing a guardian in case something happens to you (you do this in a will). So no matter how old you are or how much money you have, an estate plan makes good sense.

• If you already have an estate plan, be sure to update your beneficiaries to include your new child. And don’t forget to update the beneficiaries on your 401(k) or IRA.
• If you don’t have an estate plan, it doesn’t have to be complicated. Find out how to create one now—it may be as simple as setting up a will and specifying who will care for your children if you’re unable to.