Your family is growing.
If your family is growing, you’ve probably realized that it’s time to update your health and life insurance. Not sure what to change or how to do it? Here’s what you need to know.
How Much Life Insurance Coverage Do Families Need?
Would your family continue to thrive if you passed away tomorrow? Families with life insurance were far more likely than families without it to say they would feel financially secure if a primary earner died unexpectedly, according to a recent study.
You may wonder how much coverage you need — or if you and your partner each need a policy. While everyone’s situation is different, you’ll likely both want coverage.
Not only will you want to cover end-of-life expenses and replace lost future wages, but you’ll also want to replace less-visible forms of income, like retirement contributions and employer-provided health insurance.
Consider coverage to replace the unpaid services you each provide for your family too, like childcare, eldercare or household management.
How and When to Update Your Health Insurance
You may need to change your health insurance as your family grows. Normally, you can only do this during annual open enrollment. However, different rules apply after a qualifying life event.
For example, if you have a baby or adopt, there’s a special enrollment period. Under a marketplace health insurance policy, you’ll have 60 days to add your child. Under an employer-sponsored health plan, you’ll only have 30 days to act.
To add a natural child to your policy, you’ll likely need their birth certificate and Social Security number. For adopted children, you’ll need their legal adoption documents.
Get in touch if you have any questions about your coverage or need help updating your health or life insurance policies.
