Here’s How Much Insurance You Need for Your New Family

Finding the right insurance for your family may not be on the top of your to-do list once you find out you’re expecting or during the planning of your wedding. However, it should be a top priority for all families. Over time, your insurance needs will change, so it’s important you understand the different types of insurance and why you should have them. Here is the insurance you need for your new family. 

Life Insurance

Life insurance ensures that your family can pay bills if you pass away before your time. Life insurance can cover both parents or just one regardless of whether they are working. You should always have enough insurance to cover funeral costs so the burden doesn’t come down on your family. However, you should also be able to provide for your family when you’re no longer here by giving them a source of income. 

While funeral costs are a one-time expense, mortgage payments are not. After you pass away, your spouse will no longer have your income to lean on to pay bills. Life insurance can help your family pay bills and remain in the same home after you pass away, easing the burden of your death. 

Most families will be okay with a life insurance policy that covers ten times the parents’ salaries. For example, if one spouse earns $70,000 per year, the term life insurance policy will be for $700,000. 

If you have a spouse but no children, you should have a life insurance policy to help your spouse, especially if they aren’t working. 

Disability Insurance

Disability insurance can protect you from the loss of income resulting in a permanent disability. This type of insurance might even be more important to you because a disability can take away future income while costing money in rehabilitation and medical care. 

Depending on the severity of the disability, many people also need assistance. Not only that, but at the very least, you’ll be someone who requires food and shelter, which means more expenses for your family. 

Health Insurance

All people, no matter their age, should have health insurance. Health insurance may include medical, dental, and even vision, but typically you must purchase dental and vision insurance separately unless it’s packaged by your employer-sponsored plan. The most important type of health insurance is medical insurance. Hospital stays and even visits to the doctor for a check-up are expensive, and you don’t want to go into debt because of medical care. 

If you are in a healthy state, normal medical coverage will pay for prescriptions and regular doctors visits, while catastrophic health insurance will pay for emergencies that can be costly, such as an accident that results in hospitalization. 

Homeowners or Renter’s Insurance

Homeowner’s and renter’s insurance are similar because they both cover your home. These policies are typically inexpensive and can be bundled with your car insurance; however, they’re a necessity. Your policy should cover theft and damage to your home that could not be prevented. 

Most mortgage companies require homeowners insurance because they don’t want to be stuck paying for a home that has been destroyed by a fire or natural disaster. Your insurance policy will cover the structure of the home, the contents within the home, and any costs you incur if you need to stay in a hotel while your home is being repaired. 

Car Insurance

You legally must have car insurance if you drive a car in the United States. However, New Hampshire requires you to have a form of liability insurance that will cover you if you hit another vehicle and cause damage. In all other states, your car insurance can cover damage to another car and your car in case of an accident. It can also cover the cost to replace your car or pay for medical care for you or the other driver. 

As you know, cars are expensive, so it’s best to keep your car in the best possible condition, which means making repairs if there is an accident. Unfortunately, repairs can also be expensive, so you should always carry car insurance to keep you covered. 

Other Insurance Options

Of course, the above types of insurance are non-negotiable, but you do have other options to ensure you’re covered no matter what. These are additional insurance options you should consider when you have a new family. 

Umbrella Coverage

An umbrella insurance policy protects your family from liability that your regular insurance doesn’t. It kicks in after liability insurance is depleted and you still have remaining liability. For example, if you cause a car accident and are used for medical damages, but your car insurance can’t cover all of it, your umbrella coverage will kick in. 

Coverage for Valuables

Homeowner’s and renter’s insurance has limits on how much is covered, so if you have many expensive belongings, your insurance policy might not cover everything if there’s theft or damage. Coverage for valuables includes jewelry or expensive electronics that will be covered as an additional rider on your insurance policy. 

pet insurance

Pet Insurance

You have health insurance, so why wouldn’t your pet? Emergency vet visits are expensive. Pet insurance can help offset some of the costs of vet visits, treatments, and even surgeries your pet needs to keep them healthy for the rest of their lives. 

Many different insurance companies offer pet insurance, but you should do your research to determine what’s covered and when so you can ensure you’ll have enough to pay your pet’s vet bills.

Long Term Care Insurance

Long-term care insurance is best for seniors who might require care from individuals outside of the family. However, the sooner you start paying into a long-term care plan, the lower your premiums will be. Long-term care insurance covers the cost of home assistance, hospice, and assisted living so you can retire with peace of mind. 

How Much Insurance Does Your Family Need?

The monetary answer to this question is complicated because all families will require different policies and amounts of insurance depending on their belongings and salaries. It’s up to you to do your research and determine which insurance is right for you and your family. 

About the Guest Author: Matt Casadona


Matt Casadona has a Bachelor of Science in Business Administration, with a concentration in Marketing and a minor in Psychology. Matt is passionate about marketing and business strategy and enjoys San Diego life, traveling, and music. 

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