How You Can Protect Your New Family
Great news! You’ve discovered you’re expecting a baby, this is one of the most mind-blowing things you will ever experience, so once you’ve got your head around it, here’s how to plan financially for your impending bundle of joy!
In reality, nothing can prepare you for what lies ahead and how much joy & happiness your child or children can bring, but being prepared financially as best you can, will certainly ease some worry for you.
Here are the family protection options available to you;
New Life Insurance Policy
Set up a Life Assurance policy for yourself and your partner, this will ensure that in the event of a pre-mature death of either parent, your child or children are financially looked after, to take them right up to their college education and beyond if that is your wish. Premiums are quite low depending on your age and smoker status, the younger you are, the more affordable it is! This is an absolute must for new parents. Do this while you are pregnant, as you literally won’t have a spare minute when your baby is born.
Existing Life Insurance Policy
If you happen to have an existing life policy already set up, it might be worth your while to have a look at the policy terms and conditions, in some instances, you may be able to increase your life cover automatically (within limits) due to this life event occurring, this can also take place if you are getting married, adopting a child or moving principal residence without the further need for medical evidence, so be sure to check your existing policy!
Monthly Savings
When your child is born, you can expect to receive €140 per month per child for your children’s allowance. It would be a very good idea to set up a savings plan with this money if you feel that it is surplus to you, this will help you so much in the later years to help pay for their education or assist when they are looking to get on the property ladder. Currently, a child can inherit up to €280,000 tax free from their parents. Alternatively, if you feel that Inheritance Tax may be an issue for you, please come and talk to us.
Protect Your Income
Protect your income. Your income allows you to plan & prepare. Without our income, we cannot pay our mortgages, rent, bills and any other luxury you may enjoy. Only some occupations qualify for this, so be sure to check with me if you qualify for this benefit, you also receive tax relief on the premium so it makes it easier to carry the cost.
If you have any questions or would like to discuss any of these areas I have mentioned, please contact me at aoifec@innovuinsurance.ie.78-153-200-49.preview.graphediahosting.com or call me 0818 222 700 and I would only be too delighted to help you.
Aoife Caulfield QFA RPA
Financial Advisor
aoifec@innovuinsurance.ie.78-153-200-49.preview.graphediahosting.com
image sources: chrisstokesblog.com