3 Things Every New Parent Should Do
Becoming a parent for the first time is often one of the most amazing events in a person's life. There are few things that can compare to welcoming a child into the family and feeling the unconditional love that a parent has for a child. But becoming a parent also comes with immense responsibility. In addition to the emotional and day-to-day financial aspects, it is also important for new parents to create a plan in the event that they die before their child reaches adulthood. If you are a new parent, or will become one soon, consider doing the following to ensure a bright future for your child:
Purchase Life Insurance
A life insurance policy is a valuable safety net, and it is a good idea for both parents to have a policy. The size of the life insurance policy that you should buy will depend on your unique financial circumstances, but a good rule of thumb is to buy a policy that covers how much your wages would add up to while your child is a minor. This will help ensure that a surviving parent or guardian has the funds to raise your child comfortably. Since most people become parents when they are relatively young and healthy, term life insurance may be the best choice since it is typically less expensive than whole life insurance.
Name A Guardian
When you welcome a beloved new child into the family, the last thing that you probably want to think about is him or her becoming an orphan. But life is unpredictable, and there is a small chance that your new child may lose you and his or her other parent before he or she becomes an adult. This is why it is important to legally appoint one or more guardians who are willing and able to take on the responsibility of caring for your child if you or his or her other parent are both deceased.
Contact An Estate Attorney
Estate planning is a very important thing for new parents to do. When a child is involved, you want to make sure that he or she will benefit from your assets should you pass away. In most cases, a person should either create a legally binding will or establish a trust. Your attorney can help you determine which one is the better option for your financial situation. When estate planning, make sure that your child's other parent or legally-appointed guardian's needs are considered in order to ensure that your child will be well cared for if you die before he or she reaches the age of 18.